[Note: This story is also published at the Daily Caller]
Crude prices leapt on Tuesday after Saudi Arabia announced it would extend its 1 million barrel per day (bopd) cuts initiated July 1 through the end of 2023. At the same time, Russia’s oil ministry also said it would extend its own production cut of 300,000 bopd through the end of the year. “The additional voluntary reduction of oil supplies for export is aimed at strengthening the precautionary measures taken by OPEC+ countries in order to maintain the stability and balance of oil markets,” Russian Deputy Prime Minister Alexander Novak said.
Shortly after those announcements had been made public, the international Brent price benchmark for crude oil had shot up to over $90 per barrel, with the U.S. domestic WTI index surging past the $87/bbl mark. As recently as mid-June, before these latest cuts by Saudi Arabia, Russia, and a few other OPEC+ member countries went into effect, Brent had dropped below $72 and WTI was selling for about $68/bbl. (RELATED: DAVID BLACKMON: Energy Companies Want Nothing To Do With Biden’s Botched Offshore Wind Projects)
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