Saudi Arabia has announced that it will extend its production cut of 1 million barrels a day until the end of December. This cut was initially implemented in July and has been successful in stabilizing oil prices. The decision to extend the cut was confirmed by the Energy Ministry, stating that Saudi production in December will be approximately 9 million barrels a day.
Russia has also announced its intention to extend a cut of 300,000 barrels a day through the end of December. This combined effort from Saudi Arabia and Russia has been credited with a recent rally in oil prices.
The rally, which took place in late September, saw West Texas Intermediate crude and Brent crude come close to reaching significant price thresholds. However, the potential threat of an Israel-Hamas war, following an attack on southern Israel, caused investors to be cautious. As a result, the gains made during this time were eventually eroded.
Currently, WTI is trading at $80.51 a barrel and Brent at $84.89 a barrel. The prices have experienced a decline from their recent highs but remain relatively stable. Overall, the decision by Saudi Arabia and Russia to extend their production cuts is expected to continue supporting the oil market.