Oil Rises As Saudi Arabia And Russia Extend Production Cuts

Objectivity 4.8 | Credibility 4.8 | Relevance 4.6

Saudi Arabia and Russia have announced that they will continue the production cuts which they put in place in July.  While Saudi Arabia will evaluate its production cuts monthly, Russian Deputy Prime Minister Alexander Novak said that Russia will extend its cuts through the rest of the year.  Russia is also reducing its oil production by 500,000 bpd until the end of 2024.  Craig Erlam, analyst with futures broker OANDA said, “It would appear they’re [Russia] trying to double down and capitalize on the recent price moves. Put a big buffer in place for when the cuts end.”  Brent crude futures for November jumped $1.21 to $90.21 a barrel, the highest since last November after the announcement.  Brent, which is used to price over three-quarters of the world’s traded oil, has been rising since late June after the first cuts were announced.  Meanwhile, U.S. West Texas Intermediate crude (WTI) October futures rose $1.59 to $87.14 a barrel.