Oil prices soar to four-month highs

The surge comes amid extended production cuts by Saudi Arabia and Russia

Major global oil benchmarks have reached their highest prices since mid-April, after OPEC+ members agreed to prolong output curbs.

Brent crude futures have stabilized above $86 a barrel, while US West Texas Intermediate (WTI) crude is trading just below $83 per barrel.

Saudi Arabia, the world’s top oil exporter, announced on Thursday that it was extending production cuts for at least another month to support global crude prices. Output for September will be around 9 million barrels per day (bpd), taking into account the kingdom’s voluntary cut of 1 million bpd. Riyadh added that the measure could be further extended or deepened.

In addition, Russia has announced plans to reduce exports by 300,000 bpd, starting from September. The world’s second-largest oil exporter had previously pledged to curb production by some 500,000 bpd, or nearly 5% of its output, from March until the end of this year.

READ MORE: Russia makes new pledge to help ‘balance’ oil market

OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allied oil producers, including Russia, agreed in October to cut output by about 2% of world demand from last November until the end of 2023. The group later agreed to additional curbs in an effort to balance out the market.

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