Saudi Arabia maintains production cuts that have bolstered oil prices

Saudi Arabia will maintain previously announced oil cuts that pushed up global oil prices.

Last month, the kingdom announced it would extend its oil production cuts through the end of the year, but it said the decision would be reviewed monthly. 

The state-run Saudi Press Agency on Wednesday said the cut will be maintained, citing “an official source from the Ministry of Energy.”

However, the decision to reduce production by an additional million barrels per day will still be reviewed each month. It came on top of a previous oil cut that’s set to remain in effect until December 2024. 

The additional round of cuts was first announced in June and implemented in July. It had been extended on a month-by-month basis until last month’s announcement. 

Oil prices have gone up since that time. In early June, a barrel of international benchmark Brent crude cost about $75. Today that same barrel costs about $88.

U.S. gasoline prices have also risen by about 20 cents per gallon since that time.