Russia and Saudi Arabia confirmed October 4 they would be extending their combined 1.3 million barrels per day oil cuts until the end of 2023 with plans for the cuts to be reviewed monthly.

Saudi Arabia will maintain its 1 million barrels per day cuts, with the country’s average output set at 9 million barrels daily, until the end of the year. Meanwhile, Russia’s deputy prime minister, Alexander Novak, confirmed in an October 4 statement that the nation will continue its cuts of 300,000 barrels each day through the end of 2023.

"This voluntary cut decision will be reviewed next month to consider deepening the cut or increasing production," Novak added.

The reductions are part of previously announced voluntary cuts led by Russia and Saudi Arabia totaling 1.7 million barrels per day. Those reductions will be enforced until the end of 2024.

Analysts at S&P Global Commodity Insights predict that OPEC+ will not increase its oil outputs unless prices are above $100 per barrel for an extended period of time. OPEC expects a major oil supply shortfall for the fourth quarter of 2023.

The Joint Ministerial Monitoring Committee that oversees the OPEC+ agreement met on October 4 to discuss market conditions amid global economic uncertainty for the fourth quarter of this year.