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Oil prices jumped dramatically on Tuesday after Saudi Arabia announced that it would extend its production cuts until the end of the year, while Russia said it would extend its export cuts of 3,00,000 barrels per day (bpd) for the same period, Oil Price reported.

Russia extended its voluntary decision to curb crude exports by 300,000 bpd until December 2023, acting in concert with Saudi Arabia, with the alleged aim of maintaining stability and balance in the oil markets.

ICE Brent prices jumped above $90 per barrel after Saudi Arabia and Russia extended their supply curbs until December 2023.

Saudi Arabia will extend its voluntary 1 million bpd crude oil production cut through the end of this year, according to the official Saudi Press Agency.

This brings Saudi Arabia’s targeted crude oil production to 9 million bpd for the remainder of the year. However, the extension will still be reviewed monthly, media reported on Tuesday.

Oil markets have been guessing how OPEC will proceed with its oil production strategy, with Russia and Saudi Arabia’s role in OPEC’s plan taking the top spot of concern.

Market analysts routinely pick oil price points that would trigger additional action by Saudi Arabia.

Brent crude has shot up $6 per barrel over the last month.

With Chinese manufacturing data finally bouncing back to growth in August, the bearish sentiment is gaining the upper hand in oil markets right now.

In the meantime, Russian seaborne crude and product exports fell to their lowest since September 2022 as strong domestic demand in the summer kept volumes available for external markets capped, the report said.

Delivering on their promise to cut exports by 500,000 bpd in July-August, Russian flows to India decreased by 30 per cent  to 1.5 million bpd, just as Urals has been trading above the oil price cap threshold of $60 per barrel since early July, the Oil Price report said.