The price of oil saw a significant rise following Saudi Arabia’s decision to extend its voluntary oil production cut of 1 million barrels per day until the year’s end, as reported by the state-owned Saudi Press Agency.
Initially introduced in July, Riyadh has continued to extend this daily reduction every month.
This reduction is in addition to the 1.66 million barrels per day voluntary cuts implemented by some members of the Organization of the Petroleum Exporting Countries, set to last until the close of 2024.
Currently, Brent crude has increased by 1.3%, trading at $90.11/barrel, and West Texas Intermediate has risen by 1.6%, standing at $87.23/barrel.
Drivers are gearing up for a spike in petrol costs as oil prices soared to their highest point since November, due to Saudi Arabia’s continued reductions in production.
This decision keeps production around 9 million barrels a day, marking one of the lowest rates in recent years.
August already witnessed a notable increase in fuel costs for motorists, as wholesale prices surged in light of production cuts influenced by Saudi Arabia and Russia.
Rod Dennis from RAC commented, “Throughout August, drivers have already grappled with significant hikes in fuel costs due to the escalation in oil prices.
“If this heightened oil price persists, wholesale fuel costs will likely surge even more, potentially leading to further price increases at petrol stations across the UK in the upcoming weeks.”
