Saudi Arabia again extends oil production cut

Saudi Arabia will again extend an oil production cut of 1 million barrels per day, keeping the supply down for another month. 

The cut’s extension into September was announced by the official Saudi Press Agency, which said it was done as part of an effort to support “the stability and balance of oil markets.”

The cut was originally announced for July and was later extended into August.

The price of international benchmark Brent Crude rose Thursday amid the announcement and was around $85 per barrel at press time. 

Oil prices have generally come down since they were elevated last year amid Russia’s invasion of Ukraine. But Brent Crude prices have risen since May and June of this year, when they were in the $70 to $80 per barrel range.

In the U.S., the average price of gasoline, which is made from oil, has also risen in recent weeks — up nearly 30 cents per gallon from a month ago. The rise comes as extreme heat has also put stress on refiners.

However, the American Automobile Association said in a Thursday press release that gasoline price increases have slowed and “more relief could be on the way” as refiner operations return to normal.