Saudi Arabia to extend 1 million-barrel-a-day oil production cut through December
Saudi Arabia on Sunday confirmed it would extend a production cut of 1 million barrels a day, which first took effect in July, through the end of December.
From the Equity Insider archive. This article dates from Nov 6, 2023 and is preserved as first published.
Saudi Arabia on Sunday confirmed it would extend a production cut of 1 million barrels a day, which first took effect in July, through the end of December.
In a statement citing an Energy Ministry official, Saudi Arabia said it would extend the cut through next month, affirming a September announcement that had said it would keep the cut in place through the end of 2023. The statement said Saudi production would be approximately 9 million barrels a day in December.
The statement said Saudi production would be approximately 9 million barrels a day in December.
Russia on Sunday reportedly said it would also extend a cut of 300,000 barrels a day through the end of December.
The Saudi cut, buttressed by the Russian output reduction, was cited for a rally that took West Texas Intermediate crude CL00, 1.80% CL.1, 1.81%, the U.S. benchmark, from the mid-$60s to an intraday peak above $95 a barrel in late September. Brent crude BRN00, 1.68%, the global benchmark, came within a few dollars of the $100-a-barrel threshold in late September before setting back.
The Hamas attack on southern Israel on Oct. 7 saw crude futures bounce but fail to challenge the late-September highs as investors weighed the potential for the resulting Israel-Hamas war to encompass Iran and threaten Middle Eastern crude supplies.
Crude eventually erased or sharply trimmed the war-related gains, with WTI ending Friday at $80.51 a barrel, down from a close of $82.79 for the most actively traded contract on Oct. 6, according to FactSet. Brent ended Friday at $84.89 a barrel. It closed Oct. 6 at $84.58.
