Crude Oil extends gains, Saudi Arabia & Russia Extend Oil output cut

September 6, 2023: On Tuesday, the cut counts to 1.66 million barrels daily of unforced crude work that a few OPEC members have put in place until 2024.

State news agency SPA said that Riyadh’s decision to extend its 1 million bpd voluntary cut will be reviewed monthly to consider whether to deepen the cut or increase production.

Fellow heavyweight oil producer Russia, which leads the contingent entering OPEC nations in the OPEC+ coalition, also committed to voluntarily lower declining exports by 500,000 barrels per day in August and 300,000 per day in September.

On Tuesday, Russian Deputy Prime Minister Alexander Novak said it will extend its 300,000 barrels per day reduction of exports until the end of December 2023 and review the measure monthly.

The cuts are described as voluntary because they are outside of OPEC+’s official policy, which saves every nonexempt member a share of production quotas. OPEC Secretary-General Haitham al-Ghais stated that resorting to voluntary reductions above OPEC+ decisions does not mean division in policy views among alliance members.

The ICE Brent futures contract with November delivery was up $1.07 per barrel to $90.07 in New York, with WTI futures additionally boosted by $1.40 per barrel to $86.95 per barrel.