Oil prices are rising following reports that Saudi Arabia is once again extending its voluntary production cut. Russia is also extending its export restrictions.
State-owned Aramco plant in Saudi Arabia. Photo: AMR Nabil / AP / NTBPublished:
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Saudi Arabia extends the production cut of one million barrels per day for another three months.
This is reported by the state news agency Saudi Press Agency (SPA) on Tuesday, according to Bloomberg and Reuters.
The oil price is making a comeback and is now at 90.41 dollars and is up 1.68 percent for the day. The price is at its highest since November last year.
The cut will keep production at around 9 million barrels a day, which is the lowest level in several years.
Tuesday’s extension of the production cut was longer than expected by analysts. 20 out of 25 analysts had expected a one-month extension, according to a Bloomberg survey last week.
Russia is also extending its own export restrictions of 300,000 barrels a day by three months, in order to “maintain stability and balance” in the oil market.
– There are no signs that Saudi Arabia will deviate from its current price-over-volume strategy, says oil analyst Bjarne Schieldrop at SEB to the newspaper.
The voluntary production cut was first announced in June, and is a measure to meet a falling oil price.
2023-09-05 13:09:13
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