WTI crude futures surged more than 1.5% to above $87 a barrel on Tuesday, a fresh high since November 2022, after Saudi Arabia announced it will extend the voluntary cut of one million barrels of oil per day for another three months until the end of December, to support stability and balance of oil markets. Saudi Arabia added that the cut decision which has gone into implementation in July and was extended to include August and September, will be reviewed monthly to consider deepening the cut or increasing production. At the same time, Russia also extended its voluntary reduction in oil exports by 300,000 bpd until the end of the year. On the demand side, concerns about the health of the Chinese economy continue after services PMI at the world’s largest crude importer disappointed.
