September 05, 2023 (MLN): Brent oil surged past $90 a barrel for the first time since November 2022 as key OPEC+ producers extended supply cuts that have tightened the crude market.
Brent crude is currently trading at $90.34 per barrel, up by 1.51% on the day.
While West Texas Intermediate crude (WTI) is trading at $87.24 per barrel, up by 1.98% on the day.
Saudi Arabia extended its unilateral production cut by another three months as the kingdom seeks to support a fragile global market, Bloomberg reported.
The move will hold output at about 9 million barrels a day, the lowest level in several years.
Russia said it would curb 300,000 barrels a day of exports through year-end, aligning with Riyadh.
Crude’s latest upswing has been driven primarily by output cuts from Saudi Arabia and Russia that have helped to drain global inventories.
The recovery in one of the world’s most important commodities may complicate the task facing leading central bankers as it could add a fresh jolt to inflationary pressures just as they try to determine if they’ve done enough to rein in the pace of price gains.
