Saudi Arabia and Russia will extend voluntary oil production cuts until the end of the year

Saudi Arabia and Russia, the world’s largest oil exporters, will extend voluntary cuts to oil production by three months, until the end of this year. Saudi Arabia will cut production by one million barrels per day, while Russia will cut it by 300.000 barrels per day. News agencies reported the move today. Oil prices reacted to the announcement with a sharp rise, with North Sea Brent crude topping $90 a barrel.

Riyadh previously explained its move as an effort to support the market. Moscow reiterated today that it wants to maintain stability and balance in oil markets.

Saudi Arabia will review its decision every month and, depending on market conditions, consider whether it needs to deepen the cuts or, conversely, increase production, the Saudi state news agency SPA reported, citing the country’s Ministry of Energy.

The voluntary production cuts supplement a broader agreement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to limit production through 2024 in order to support oil prices. The group, known as OPEC+, accounts for around 40 percent of global oil production.