Saudi Arabia will extend a production cut of 1 million barrels a day for three months, running to the end of December, the country’s official press agency reported Tuesday, citing an energy ministry official. The report said Saudi production in October, November and December would effectively be 9 million barrels a day. Russia also said it would extend supply cuts, news reports said. Saudi Arabia implemented the 1 million barrel a day reduction in July and had previously extended it through the end of September, while stipulating it could be further extended or deepened. Oil futures erased losses after the announcement, with West Texas Intermediate crude for October delivery
CL.1,
jumping 2% to $87.23 a barrel on the New York Mercantile Exchange, while November Brent crude
BRN00,
rose 1.3% to $90.15 a barrel on ICE Futures Europe.
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