Brent oil price dropped below $91 per barrel

The price of Brent oil has dropped below $91/barrel, as follows from data trading on the London ICE exchange.

The price of December Brent futures as of 18:40 Moscow time was $90.9/barrel. (-1.4%), which was the minimum since September 12. WTI oil price for delivery in November amounts to $88.9/bbl. (-2.07%).

On September 5, Deputy Prime Minister Alexander Novak announced that Russia would extend the voluntary reduction in oil production by 300,000 barrels per day until the end of December 2023. On the same day, Saudi Arabia announced the extension of the voluntary reduction in oil production by 1 million barrels per day for another three months – until the end of December 2023. The measure is in addition to Russia’s previously announced voluntary reduction in oil production by 500,000 barrels per day, which will be in effect until the end of 2024.

As the Deputy Prime Minister noted on September 5, the decision to reduce oil production will now be reviewed monthly. This is necessary in order to deepen cuts or increase production, depending on the situation on the world market. Press Secretary of the Russian President Dmitry Peskov said at the end of September that the possibility of increasing oil exports within OPEC+ not being discussed.

Earlier today the Ministry of Finance reportedthat the average price for Russian Urals oil in September was $83.08 per barrel, which is 21.7% more than in the same period last year. In January–September, the figure, on the contrary, decreased in annual terms by 26.1% to $80.58/barrel. The price of North Sea Dated oil (similar to Brent) in September was $93.98.