• Friday, February 23, 2024
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BusinessDay

Oil hits $90 a barrel after OPEC+ extends supply cut

Oil cabals: For us to win, they must lose

Brent oil rallied to $90 a barrel for the first time since November as key OPEC+ producers extended supply cuts that have tightened the crude market.

Saudi Arabia extended its unilateral production cut by another three months as the kingdom seeks to support a fragile global market. The move will hold output at about 9 million barrels a day, the lowest level in several years. Russia said it would curb 300,000 barrels a day of exports through year end, aligning with Riyadh.

Crude’s latest upswing has been driven primarily by output cuts from Saudi Arabia and Russia that have helped to drain global inventories.

Read also: Oil sector prospects optimistic after Tinubu’s 100 days

The recovery in one of the world’s most important commodities may complicate the task facing leading central bankers as it could add a fresh jolt to inflationary pressures just as they try to determine if they’ve done enough to rein in the pace of price gains.