Crude oil futures ended sharply higher on Tuesday, magnifying recent session’s gains, as Saudi Arabia said that it will extend its 1 million barrel per day voluntary oil production cut until the end of 2023. The kingdom, which first applied the 1 million bpd reduction in July, has been extending it on a monthly basis. This 1-million cut is in addition to the reduction of 1.66 million barrels per day of other voluntary output declines that some members of OPEC have put in place until the end of the year. Both Russia and Saudi have stated that they would review the supply cuts on a monthly basis, and modify them depending on market conditions.
Benchmark crude oil futures for October delivery rose $1.14 or 1.3 percent to settle at $86.69 a barrel on the New York Mercantile Exchange. Brent crude for November delivery surged $1.04 or 1.2 percent to settle at $90.04 a barrel on London's Intercontinental Exchange.