Oil surges on Saudi plan to extend output cuts

US and international oil prices jumped on Friday by more than 4% after a week-long slump. Saudi Arabia is considering prolonging production cuts into 2024, the Financial Times reported. WTI crude is trading at $76.02 per barrel at the time of writing.

OPEC+ is set to convene in Vienna on November 26 to discuss any adjustments to output.

Saudi Arabia is preparing to extend the work to reduce its oil production at a time when the OPEC+ cartel is considering further reducing the production of its member states due to the recent decline in prices and increasing anger over the ongoing war in the Middle East.

Informed sources close to the Saudi authorities believe that Riyadh has begun thinking about extending the production cut by one million barrels per day until next spring, after global oil prices fell to their lowest levels in four months, near $77 per barrel.

The voluntary output cut by Saudis is scheduled to end at the end of this year, a measure that the country began at the beginning of the summer.