Oil prices increased by roughly $1 per barrel on Tuesday after Saudi Arabia and Russia agreed to extend supply cuts through the end of 2023.
The agreement by Riyadh and Moscow went beyond an anticipated October extension, CNBC reported. Brent crude futures rose roughly 1.2% to $90.04 per barrel following the announcement, marking the highest figure for that metric since November 2022. Markets have since reopened at Bret Crude has continued to surge, reaching $90.25 per barrel as of press time.
The Russo-Saudi supply cut extension follows an April decision from OPEC+, a bloc of key oil producers, to cut production by more than $1 million barrels per day.
With winter approaching, myriad experts have expressed concerns that the production cuts may lead to shortages during months of traditionally high demand, per CNBC. Such a development may prove beneficial for Russia in particular, as Moscow has partially relied on its continued natural resource experts to fuel its ongoing invasion of Ukraine.
American gas prices have hovered over $3.80 per gallon for the past month, according to AAA. The impact of of the supply cut extension on American markets is not yet clear, though the decision may serve to push that figure up to some extent.
Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.