Oil prices rose by 1.5% following the commitment of Saudi Arabia and Russia to maintain supply cuts

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Oil prices experienced a surge on Monday, driven by the reiteration of commitment to additional oil supply cuts by major exporters Saudi Arabia and Russia until the year-end. Brent crude futures climbed $1.25, marking a 1.47 percent increase to reach $86.14 a barrel by 1145 GMT. Similarly, US West Texas Intermediate crude saw a rise of $1.29, equivalent to a 1.6 percent increase, reaching $81.80.

The rise in oil prices followed a week of declines, with both benchmarks witnessing a decrease of approximately 6 percent in the week leading up to November 3.

Saudi Arabia officially announced its decision to maintain the extra voluntary cut of 1 million barrels per day (bpd) throughout December, aiming to sustain output of around 9 million bpd, as stated by a source from the Ministry of Energy.

Likewise, Russia stated its intention to extend the additional voluntary cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December. Considering the seasonally subdued oil demand at the beginning of each year and persisting concerns about economic growth, the cuts might be prolonged into the first quarter of 2024.