Oil prices rise after reports of extended production cuts – E24

Oil prices rose after reports that Saudi Arabia is once again extending its voluntary production cuts. Russia is also expanding export restrictions.

Saudi Arabia extends production cuts by one million barrels per day for another three months.

This was reported by the Saudi Press Agency (SPA) on Tuesday, according to what was reported by Bloomberg and Reuters.

Oil is back on the rise and is now at $90.41, up 1.68 percent on the day. The price is at its highest since November last year.

The cut would keep production at about 9 million barrels per day, the lowest level in several years.

The extension of the production cut on Tuesday was longer than expected by analysts. Twenty out of 25 analysts had expected a one-month extension, according to a Bloomberg survey last week.

Russia is also extending its export restrictions of 300,000 barrels per day for three months, in order to “maintain stability and balance” in the oil market.

There are no signs that Saudi Arabia will deviate from its current strategy of price over volume, oil analyst Bjarne Schildrup at SEB tells the paper.

The voluntary production cut was first announced in June, a measure to counter lower oil prices.