Oil prices rose to their highest level since November 2022 on Tuesday, after Saudi Arabia and Russia announced that they would extend their production cuts.
The price of Brent crude, the international benchmark, rose 0.92% to $90.75 per barrel. West Texas Intermediate crude, the U.S. benchmark, rose 1.43% to $86.77 per barrel.
The Saudi Ministry of Energy said it would continue to reduce its oil production by one million barrels per day for an additional three months, until the end of the year. Russia also said it would continue to reduce its oil exports by 300,000 barrels per day until the end of 2023.
The decision by Saudi Arabia and Russia to extend their production cuts is likely to further tighten the global oil market and push prices higher. The two countries are the world’s largest oil producers and their decision is a sign that they are concerned about the rising price of oil.
The rise in oil prices is being driven by a number of factors, including the ongoing war in Ukraine, which has disrupted global energy supplies. The war has also led to sanctions on Russia, which is a major oil exporter.
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