Oil prices are more than likely set to rise further as Saudi Arabia recently reaffirmed their production cuts to the U.S., a time when the United States and the Biden administration has drained the nationâs strategic petroleum reserves.
In April OPEC turned some heads when they suddenly announced they would begin productions cuts of oil by hundreds of millions of barrels a day.
Now Saudi Arabia, the juggernaut of OPEC, recently announced that these productions will extend all the way into the end of 2024, along with Russia jointly announcing productions cuts as well. CNBC reported:
Fellow heavyweight oil producer Russia â which leads the contingent that joins OPEC nations in the OPEC+ coalition â also pledged to voluntarily reduce exports by 500,000 barrels per day in August and by 300,000 barrels per day in September. Russian Deputy Prime Minister Alexander Novak on Tuesday said that it will extend its 300,000 barrels per day reduction of exports until the end of December 2023 and will likewise review the measure on a monthly basis, according to the Kremlin.
This past Friday, September 1st, oil prices reached a new high for 2023 at $85. Brent crude oil reached $87.88 that same day, yet another record on the year…
