and allied oil producing countries face a decision Sunday on whether to extend production cuts set to expire next month – a move that could push oil prices higher as the summer travel season increases demand for fuel and as the U.S. presidential election contest heats up.+ alliance, made up of members of the producers cartel and allied countries, including Russia, is holding an online meeting, but the cuts in question concern a smaller group of eight, including the Saudis.
The Saudis need higher oil prices to fund ambitious plans by Crown Prince Mohammed bin Salman to diversify the country’s economy away from fossil fuel exports. Higher oil prices would also help Russia maintain economic growth and stability as it spends heavily on its war against Ukraine.“The probable extension of the voluntary production cuts by OPEC+ should cause oil prices to rise again,” said Barbara Lambrecht, commodities analyst at Germany’s Commerzbank.