Saudi Arabia and Russia agreed on Tuesday to continue cutting oil production until the end of the year.
The deal cuts global energy markets by 1.3 million barrels of crude oil per day, which has boosted oil prices.
The decision by Riyadh and Moscow pushed the price of a barrel of oil to $90, the highest level since November 2022.
The move by both countries could increase inflation and fuel prices. It will also put new pressure on the relationship between Saudi Arabia and the United States.
President Biden warned the kingdom last year that there would be unspecified “consequences” that could result from being friendly with Russia by reducing production, while Moscow is waging war in Ukraine.
The statement of Saudi Arabia, which was broadcast by the government news agency Saudi Press Agency, said that the country will keep an eye on the market and may take additional measures if necessary.
“These additional voluntary reductions were taken to strengthen the precautionary measures of OPEC+ countries, with the aim of supporting the stability and balance of the oil markets,” the SPA news agency said, citing an unnamed official. of the Ministry of Energy.
Russian state news agency Tass quoted Alexander Novak, deputy energy minister, as saying that Moscow would continue to cut production by 300,000 barrels per day.
The decision “is aimed at strengthening the precautionary efforts of the OPEC+ countries with the aim of supporting the stability and balance of the oil markets,” said Novak.
US national security adviser Jake Sullivan declined to comment on the impact of the decision on markets, although he said US officials are in regular contact with the kingdom.
He also said that Biden “will use everything in his power” to help the American people.
Relations between Saudi Arabia and Washington have deteriorated since the election of President Joe Biden in November 2020.
Biden made a campaign promise to “isolate” Crown Prince Mohammed bin Salman over the 2018 killing of journalist Jamal Khashoggi.
However, the tension between the two countries has cooled in recent months as the Biden administration seeks an agreement to have diplomatic relations with Riyadh and recognize Israel.