Saudi Arabia and Russia Extend Voluntary Oil Output Cuts. Cr On Monday, Saudi Arabia said it would lower production by 1 million barrels a day through August. Russia said it would produce 500,000 barrels a day less through August. Both come on top of reductions made by the Organization of the Petroleum Exporting Countries.
The moves are designed to prop up oil prices that have fallen this year on concerns about weakening demand. After an aggressive global campaign of interest-rate increases and the unexpected trouble China has had re-emerging from the pandemic, prices are down more than 10% since Jan. 1, even with OPEC’s pledges to reduce supply.
Prices spiked in the wake of Russia’s invasion of Ukraine in February 2022. But they’ve now fallen for four consecutive quarters, the longest losing streak since at least 1988.
OPEC collectively agreed to lower output by some 2 million barrels a day last year and said it would add voluntary cuts of some 1.6 million barrels a day in April. Saudi Arabia and Russia are two of the world’s biggest producers of oil.
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Brent crude, the international benchmark, rose 1% to $76.17 a barrel. West Texas Intermediate, the U.S. standard, advanced 1.2% to $71.50 a barrel.