Oil surges beyond US$90 after Saudi Arabia and Russia prolong cuts
BNN Bloomberg
Brent oil soared past US$90 a barrel for the first time since November as the largest OPEC+ producers extended their supply cuts to year-end.
In a move that risks a fresh inflationary impetus for the global economy, Saudi Arabia will continue its unilateral production cutback of one million barrels a day until December, according to a statement on the state-run press agency. The move will hold output at about nine million barrels a day — the lowest level in several years — for six months in total.
Russia’s export reduction of 300,000 barrels a day will be extended for the same duration, Deputy Prime Minister Alexander Novak said in a separate statement.
Crude surged after the news, with international benchmark Brent jumping as much as two per cent to $90.75 a barrel as of 2:45 p.m. in London. Global oil markets have been tightening as demand climbs to record levels and inventories tumble. Even mounting concerns about Chinese economic growth have been unable to prevent a summer rally.
