Saudi Arabia extends cuts in oil production for third straight month, 1 million barrels a day

Saudi Arabia announced Thursday the country is extending its cuts in oil production for a third month, going into September and that the cuts could continue.

The announcement was made by the government's Ministry of Energy, which said the cut would be 1 million barrels a day.

This means that Saudi Arabia’s September oil production will be reduced to 9 million billion barrels next month, "in addition to" cuts announced in April that last through December of next year.

In July, Russia and Saudi Arabia, two of the largest oil producers worldwide, cited market stability as the reason for their ongoing declines in production.

However, the such cuts in supply typically increases the cost. 

Soon after announcement Thursday afternoon Eastern Time, oil prices began rising. WTI crude was up more than 2% at $81.51 per barrel, and Brent crude was up 1.87% to $85.07 per barrel.

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