Oil Prices Surge After Extended Production Cuts

INTERNATIONAL – Oil prices hit a new high for the year so far after Saudi Arabia and Russia – the world’s biggest crude exporters said they would extend output cuts by at least another three months.

Brent crude, the global benchmark, gained 1.8% to trade above $90 a barrel, while West Texas Intermediate (WTI), the U.S. benchmark, rose by a similar margin to $87 a barrel.

The Saudi production cut which has been in place since July is the biggest in years and has depressed the kingdom’s output to nine million barrels per day.