Oil Prices Soar After, Saudi Arabia and Russia , Agree to Prolong Production Cuts.<br />On September 5, oil prices soared over <br />1.3% to reach their highest levels in 10 months. .<br />On September 5, oil prices soared over <br />1.3% to reach their highest levels in 10 months. .<br />Insider reports that Brent crude, <br />an international benchmark, broke $90 a barrel <br />for the first time since November of 2022.<br />West Texas Intermediate crude oil also reached <br />a 10-month high, trading at around $87 a barrel. .<br />The price jump came after Saudi Press Agency <br />announced that Saudi Arabia and Russia agreed <br />to prolong production cuts until December.<br />The price jump came after Saudi Press Agency <br />announced that Saudi Arabia and Russia agreed <br />to prolong production cuts until December.<br />Insider reports that the move was more aggressive <br />than traders had expected, holding output <br />at roughly 9 million barrels a day, the lowest in years. .<br />This voluntary cut decision <br />will be reviewed monthly to <br />consider deepening the cut <br />or increasing production, Saudi Press Agency statement, via 'Bloomberg'.<br />Supply cuts were first introduced in July, and <br />experts had predicted one additional month of cuts, <br />not the three that were announced on September 5.<br />With the production cut extended, <br />we anticipate a market deficit of <br />more than 1.5 million bpd in 4Q23, UBS strategist, note to clients, via CNBC.<br />So, with oil inventories set to fall <br />further over the coming months, <br />we expect Brent to rise to <br />$95/bbl (barrel) by year-end, UBS strategist, note to clients, via CNBC.<br />Brent futures have climbed more <br />than 25% since the end of June <br />when Riyadh made its first voluntary cuts
