Saudi Arabia and Russia have agreed to continue their additional voluntary oil cuts until the end of 2023. The two countries made the announcement on November 5, 2023, after a meeting of the OPEC+ oil cartel.
Saudi Arabia and Russia have been making additional voluntary oil cuts since earlier this year in an effort to tighten supply and support oil prices.
The cuts have been successful in boosting oil prices, which have risen to over $90 per barrel in recent weeks.
The decision by Saudi Arabia and Russia to continue their additional voluntary oil cuts is a sign that they are committed to maintaining a stable oil market. It is also a sign that they are confident in the demand for oil in the coming months.
The cuts are likely to support oil prices in the near term. However, the long-term outlook for oil prices is uncertain. The global economy is facing a number of challenges, including inflation, rising interest rates, and the war in Ukraine.
These challenges could lead to a decline in demand for oil, which would put downward pressure on oil prices.
Overall, the decision by Saudi Arabia and Russia to continue their additional voluntary oil cuts is a positive development for the oil market.
The cuts are likely to support oil prices in the near term, but the long-term outlook for oil prices is uncertain.