Brent crude tops $90 a barrel for the first time since November

The cost of Brent oil exceeded $90/bbl. for the first time since last November, follows from data trades. While on September 5, Russia and Saudi Arabia extended their voluntary production cuts.

As of 17:04 Moscow time, the price of November futures for Brent on the London ICE exchange rose by 1.46% to $90.25/bbl. The price of WTI oil in November Moscow time is $87.17/bbl, according to trading data.

September 5, Deputy Prime Minister Alexander Novak informedthat Russia will extend the cut in oil production until the end of December 2023.

On September 5, it also became known that Saudi Arabia decided to extend the voluntary cut in oil production by 1 million barrels per day for another three months – until the end of December 2023, transmits Reuters. The decision on voluntary reduction will be reviewed monthly, emphasized in Riyadh.

On July 3, Novak said Russia would voluntarily cut oil exports by another 500,000 bbl/d in August. The office of the Deputy Prime Minister explained to journalists that supplies abroad would be reduced due to an additional reduction in production in Russia. In early August, Novak announced an extension of the cut in oil exports to September, but to 300,000 barrels per day.

As Ekaterina Krylova, managing expert of the PSB Analytics and Expertise Center, said in an interview with Vedomosti, commenting on the August reduction in Russia, the continued decline in oil supplies from Russia and the emerging shortage of raw materials in the world will contribute to further growth in quotations.