The rig count is still in plunge mode… The United States drained its strategic reserve… Crude oil prices rise above $87.00 for the first time since November 2022 as Saudi Arabia extends production cuts

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Oil prices hit 10-month high as Saudi Arabia, Russia extend supply cuts

Saudi Arabia and Russia agreed Tuesday to extend their voluntary oil production cuts through the end of this year, trimming 1.3 million barrels of crude out of the global market and boosting energy prices.

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The dual announcements from Riyadh and Moscow pushed benchmark Brent crude around $90 a barrel on Tuesday, a price unseen in the market since November.

The countries’ moves could increase inflation and the cost for motorists at gasoline pumps.

It also puts new pressure on Saudi Arabia’s relationship with the United States, as President Joe Biden last year warned the kingdom there would be unspecified “consequences” for partnering with Russia on cuts as Moscow wages war on Ukraine.