𝐎𝐢𝐥 𝐩𝐫𝐢𝐜𝐞𝐬 𝐫𝐢𝐬𝐞 𝐚𝐬 𝐒𝐚𝐮𝐝𝐢 𝐀𝐫𝐚𝐛𝐢𝐚 𝐚𝐧𝐝 𝐑𝐮𝐬𝐬𝐢𝐚 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞 𝐭𝐡𝐞𝐲 𝐰𝐢𝐥𝐥 𝐦𝐚𝐢𝐧𝐭𝐚𝐢𝐧 𝐭𝐡𝐞𝐢𝐫 𝟏.𝟑 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐛𝐚𝐫𝐫𝐞𝐥 𝐫𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫.

The extension of oil output restrictions by Saudi Arabia and Russia has led to a rise in oil prices and demonstrates coordination between the two countries. By mutual agreement, Russia and Saudi Arabia have agreed to prolong their voluntary cuts of 300,000 and 1 million barrels per day, respectively, through the end of the year. The decision was made to maintain peace in the oil market and will be reviewed monthly to determine whether the reduction should be deeper or production should be raised. This is the highest price for Brent crude oil since last November.

The simultaneous announcements from Riyadh and Moscow sent the price of benchmark Brent crude past $90 per barrel on Tuesday afternoon.

Inflation and gas prices may rise as a result of the countries’ actions. A reduction of almost $16 billion in Saudi Arabia’s foreign reserves in July was the largest drop since 2020, and it has contributed to strained relations with the United States.

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