Russia and Saudi Arabia, on Tuesday (September 5), said that they would extend the voluntary oil cuts until the end of this year. This has sent the price of Brent crude to a 10-month high, months after Saudi Arabia, the world’s biggest crude exporter, first announced the cuts as well as sparked worries among investors about potential shortages during peak winter demand.

<h2>Saudi Arabia announces oil export cuts</h2>

The announcement was made by Saudi Arabia’s energy ministry which said that they are extending the oil production cut to one million barrels per day, which first took effect in July, for “another three months until the end of December 2023.”&nbsp;

This comes after the oil production cuts were first announced after a June meeting of the 23-nation OPEC+ alliance, which also includes Russia. This recent announcement also comes after a statement in early August said that the cut would last through September and possibly “deepened”, but that was not the case on Tuesday.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/saudi-arabia-announces-voluntary-oil-cut-of-1-mn-barrels-per-day-600480">Saudi Arabia announces further voluntary oil production cut of 1mn barrels per day</a>

The decision will be “reviewed monthly to consider deepening the cut or increasing production,” said the kingdom’s energy ministry. Notably, while Saudi Arabia has reported its daily capacity as 12 million bpd, currently their daily production stands at approximately nine million bpd.&nbsp;

<h2>What did Russia say?</h2>

Russia also said that it would extend its oil export cuts of 300,000 barrels per day until the end of 2023 to “maintain stability” on markets, as per AFP.&nbsp;

Deputy Prime Minister Alexander Novak announcing the extension said that they would also review the cuts monthly and take a call on whether to deepen them or whether production should be increased “depending on the global market situation.”&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/saudi-arabia-opec-members-announce-oil-production-cuts-by-over-a-million-bpd-578386">Saudi Arabia, OPEC+ members announce oil production cuts by over a million bpd</a>

<h2>Announcement affects markets</h2>

Brent crude futures rose by $1.04 or 1.2 per cent and settled at $90.04 a barrel, closing above the $90 mark for the first time since November 2022, according to Reuters.&nbsp;

While investors had expected Russia and Saudi Arabia to extend the voluntary cuts into October, a three-month extension came as a shock.

“These bullish moves significantly tighten the global oil market and can only result in one thing: higher oil prices worldwide,” said Jorge Leon, senior vice president at Rystad Energy, as quoted by Reuters.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/global-oil-demand-to-reach-an-all-time-high-this-year-as-china-re-opens-iea-553899">Global oil demand to reach an all-time high this year as China re-opens, says IEA</a>

Last year, OPEC+ agreed to reduce output by two million barrels per day, a decision which drew criticism from the United States who accused Saudi Arabia of supporting Russia’s war in Ukraine.&nbsp;

UBS now reportedly expects Brent crude to rise to $95 a barrel by the end of 2023.&nbsp;

(With inputs from agencies)&nbsp; 
 
&nbsp;

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Russia and Saudi Arabia, on Tuesday (September 5), said that they would extend the voluntary oil cuts until the end of this year. This has sent the price of Brent crude to a 10-month high, months after Saudi Arabia, the world’s biggest crude exporter, first announced the cuts as well as sparked worries among investors about potential shortages during peak winter demand.

Russia and Saudi Arabia, on Tuesday (September 5), said that they would extend the voluntary oil cuts until the end of this year. This has sent the price of Brent crude to a 10-month high, months after Saudi Arabia, the world’s biggest crude exporter, first announced the cuts as well as sparked worries among investors about potential shortages during peak winter demand. Saudi Arabia announces oil export cuts The announcement was made by Saudi Arabia’s energy ministry which said that they are extending the oil production cut to one million barrels per day, which first took effect in July, for “another three months until the end of December 2023.” This comes after the oil production cuts were first announced after a June meeting of the 23-nation OPEC+ alliance, which also includes Russia. This recent announcement also comes after a statement in early August said that the cut would last through September and possibly “deepened”, but that was not the case on Tuesday. ALSO READ | Saudi Arabia announces further voluntary oil production cut of 1mn barrels per day The decision will be “reviewed monthly to consider deepening the cut or increasing production,” said the kingdom’s energy ministry. Notably, while Saudi Arabia has reported its daily capacity as 12 million bpd, currently their daily production stands at approximately nine million bpd. What did Russia say? Russia also said that it would extend its oil export cuts of 300,000 barrels per day until the end of 2023 to “maintain stability” on markets, as per AFP. Deputy Prime Minister Alexander Novak announcing the extension said that they would also review the cuts monthly and take a call on whether to deepen them or whether production should be increased “depending on the global market situation.” ALSO READ | Saudi Arabia, OPEC+ members announce oil production cuts by over a million bpd Announcement affects markets Brent crude futures rose by $1.04 or 1.2 per cent and settled at $90.04 a barrel, closing above the $90 mark for the first time since November 2022, according to Reuters. While investors had expected Russia and Saudi Arabia to extend the voluntary cuts into October, a three-month extension came as a shock. “These bullish moves significantly tighten the global oil market and can only result in one thing: higher oil prices worldwide,” said Jorge Leon, senior vice president at Rystad Energy, as quoted by Reuters. ALSO READ | Global oil demand to reach an all-time high this year as China re-opens, says IEA Last year, OPEC+ agreed to reduce output by two million barrels per day, a decision which drew criticism from the United States who accused Saudi Arabia of supporting Russia’s war in Ukraine. UBS now reportedly expects Brent crude to rise to $95 a barrel by the end of 2023. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Russia and Saudi Arabia extend oil export cuts to end of 2023; oil prices soar

Oil prices were up two per cent (2%) on Tuesday (February 02) after major producers showed that they were reining in output roughly in line with their commitments.

World Business Watch: Oil prices hit highest in a year as producers limit supply

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Russia and Saudi Arabia extend oil export cuts to end of 2023; oil prices soar

World Business Watch: Oil prices hit highest in a year as producers limit supply