The price of Brent crude oil jumped above $90 per barrel in trading on Tuesday after information emerged about Saudi Arabia’s plans to extend its voluntary production cuts until the end of 2023.
The cost of November futures for Brent on the London ICE Futures exchange at 16:35 on Tuesday is $90.5 per barrel, which is $1.5 (1.69%) higher than the price at the close of the previous session.
The price of October futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) has risen by this time by $1.81 (2.12%) to $87.36 per barrel.
Saudi Arabia will continue to voluntarily reduce oil production to 1 million bpd by the end of 2023, the kingdom’s state agency said, citing an official source in the Ministry of Energy.
Before this information was released, Brent was trading at around $88.4 per barrel, WTI at around $85.3 per barrel.
The actual level of oil production in Saudi Arabia is expected to reach 9 million bpd by the end of this year, the report emphasizes. “The voluntary decision to reduce oil production will be reviewed monthly with the possibility of reducing or increasing production,” the statement said.
This reduction is in addition to the 500 thousand bpd production cut announced in April, which will last until the end of 2024.
According to the source of the kingdom’s state agency, these steps are aimed at strengthening the precautionary measures taken by OPEC+ to maintain stability and balance in the oil markets.
