Crude oil prices plunged Tuesday morning after the Saudi news agency reported that the kingdom is extending a voluntary oil production cut until the end of the year.
Futures on West Texas Intermediate crude oil, the US oil benchmark, rose more than 2% after the news to $87.50 a barrel, the highest level of the year.
The cut of one million barrels per day, which is roughly 10% of Saudi Arabia’s usual output, began in July. It is responsible for more than a third of the total budget cuts that the Organization of the Petroleum Exporting Countries and its allies have implemented since last fall as part of an effort to raise petroleum prices.
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