London September 5 2023: Oil prices jumped roughly 2% on Tuesday after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, stretching a combined 1.3 million barrel per day (bpd) reduction for another three months through December.
By 1323 GMT Brent crude futures for November were up $1.62, or about 1.8%, to $90.62 a barrel, while U.S. West Texas Intermediate crude (WTI) October futures rose $1.92, or about 2.2%, to $87.47 a barrel.
Riyadh’s decision to extend its one million bpd voluntary cut will be reviewed monthly to consider whether to deepen the cut or increase production, state news agency SPA said on Tuesday.
Saudi Arabia was widely expected to extend its voluntary oil cuts into October.
Fellow OPEC+ member, Russia, also prolonged its voluntary cuts through the end of the year.
The world’s second-largest oil exporter is reducing exports by 300,000 bpd for the period. It has been cutting output and exports in tandem with Saudi Arabia on top of existing OPEC+ supply reductions.
