Saudi Arabia and Russia extend oil cuts

RIYADH, September 6, 2023 – Saudi Arabia and Russia have both decided to extend their voluntary oil cuts to the end of 2023, Reuters reported on Tuesday.

The decision will see Saudi Arabia extend its oil output cut of 1 million bopd for October, November and December. The move will see the country continue producing around 9 million bopd until the end of the year.

Russia also extended its voluntary cut to reduce oil exports by 300,000 bpd to the end of 2023.

 

The country cut oil exports by 500,000 bpd in August and 300,000 bpd in September.

Both countries have expressed the possibility to deepen the monthly cuts, which will be decided on a month-by-month basis.

In response, Brent prices rose to more than USD 90 per barrel for the first time since November 2022.

The cut follows a broad deal made by OPEC+ members in June 2023 to dampen oil production into 2024.

OPEC+ members produce around 40% of the world’s oil and have been limiting output since 2022.

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