The extension by Russia and Saudi Arabia of the decision to reduce oil production and supplies until the end of the year will lead to a significant deficit in the world market in the fourth quarter, the International Energy Agency (IEA) said, Report informs via TASS.
The IEA notes that the Saudi-Russian alliance is a serious challenge for oil markets.
“After oil prices were relatively calm in August, with volatility at multi-year lows. The decision by Saudi Arabia and Russia to extend oil production and supply cuts by a total of 1.3 million bpd until the end of the year triggered a price jump for North Sea Dated (Brent dated) above $90 per barrel to a 10-month high,” the IEA said.
In early September, Russia extended the reduction in oil supplies by 300,000 b/d until the end of the year, and Saudi Arabia decided to extend the voluntary reduction in oil production by 1 million b/d for the same period.