In a decisive step to stabilize global oil prices, Saudi Arabia has extended its voluntary oil production cuts of one million barrels per day until 2024. This temporary measure, which was initially announced a few months ago, will remain effective until the end of the year. The announcement was delivered via the state-run Saudi Press Agency citing an official from the Ministry of Energy. For the next four months, the Kingdom will maintain an output of approximately nine million barrels per day. However, market participants should exercise caution while strategizing long-term trades based on this development. The agreement will undergo monthly reviews, indicating that Riyadh reserves the right to either deepen the cuts or, alternatively, release additional barrels to the global market if deemed necessary. According to the official statement, these supply restrictions are “aimed at strengthening the precautionary measures taken by OPEC+ countries in order to maintain stability and balance of oil markets.” In June this year, OPEC members failed to reach a consensus on stabilizing measures, forcing Saudi Arabia to act independently. Consequently, the nation announced a voluntary reduction in its oil production. In August, Russia joined this move and cut its sea oil exports by 500,000 barrels per day. Right after the Saudi press release, Russia's Deputy Prime Minister Alexander Novak disclosed that Russia too would be extending its oil export cuts by 300,000 barrels per day until the year-end. Following these announcements, Brent crude surged past $90 per barrel and is still trading above this level. Over the past month, the combined efforts of Saudi Arabia and Russia have driven oil quotes up by over 10%.