Oil Prices Soar After Saudi Arabia and Russia Agree to Prolong Production Cuts

Oil Prices Soar After, Saudi Arabia and Russia , Agree to Prolong Production Cuts.

On September 5, oil prices soared over 1.3% to reach their highest levels in 10 months.

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On September 5, oil prices soared over 1.3% to reach their highest levels in 10 months.

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Insider reports that Brent crude, an international benchmark, broke $90 a barrel for the first time since November of 2022.

West Texas Intermediate crude oil also reached a 10-month high, trading at around $87 a barrel.

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The price jump came after Saudi Press Agency announced that Saudi Arabia and Russia agreed to prolong production cuts until December.

The price jump came after Saudi Press Agency announced that Saudi Arabia and Russia agreed to prolong production cuts until December.

Insider reports that the move was more aggressive than traders had expected, holding output at roughly 9 million barrels a day, the lowest in years.

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This voluntary cut decision will be reviewed monthly to consider deepening the cut or increasing production, Saudi Press Agency statement, via 'Bloomberg'.

Supply cuts were first introduced in July, and experts had predicted one additional month of cuts, not the three that were announced on September 5.

With the production cut extended, we anticipate a market deficit of more than 1.5 million bpd in 4Q23, UBS strategist, note to clients, via CNBC.

So, with oil inventories set to fall further over the coming months, we expect Brent to rise to $95/bbl (barrel) by year-end, UBS strategist, note to clients, via CNBC.

Brent futures have climbed more than 25% since the end of June when Riyadh made its first voluntary cuts