Oil Prices Hold Near $90 a Barrel on Saudi, Russian Production Cuts
U.S. News & World Report Global oil prices backed off the $90 a barrel mark early Wednesday as traders digested the news that Saudi Arabia and Russia would extend their summer production cuts until December.
The Saudis made the announcement Tuesday to continue the 1 million barrel a day reduction made in July, and Russia also joined in to extend its own 300,000 a day cut. The move is likely to keep U.S. gas prices higher for longer. The average price of a gallon of regular is now $3.80, roughly where it has been for about a year, although there had been some dips earlier in 2023.
Heading into the Labor Day weekend, gas prices remained largely stable, according to Gas Buddy, though the increase from higher oil prices usually takes a few weeks to reach the pump.
The national average fell to its lowest level since July ahead of Labor Day, even as oil prices rose last week to the highest level since last November, Patrick De Haan, head of petroleum analysis at GasBuddy, said in his blog on Tuesday. In addition, Hurricane Idalia steered well clear of significant energy infrastructure, leading to zero impact on gas prices.
