Saudi Arabia will extend its voluntary oil output cut of 1 million barrels per day for another three months until the end of December 2023, state news agency SPA said on Tuesday.
Oil prices rose sharply following the news of the Saudi cut extension, with Brent prices rising above $90 a barrel for the first time since Nov. 18.
The voluntary cut decision will be reviewed monthly to consider deepening the cut or increasing production depending on market conditions, SPA said, citing a Saudi energy ministry official.
The Saudi voluntary cut is on top of a previous production cut agreed by several producers in the Organization of the Petroleum Exporting Countries along with Russia and other allies known as OPEC+, in April that extends to the end of 2024.
Russia on Tuesday also extended its voluntary decision to reduce its oil exports by 300,000 bpd to the end of this year, Deputy Prime Minister Alexander Novak said in a statement on Tuesday.
Moscow will also review the voluntary reduction monthly and may deepen it or raise it, Novak said.
(Reporting by Nayera Abdallah and Jana Choukeir; Writing by Yousef Saba; Editing by Nadine Awadalla and David Evans)