US and global oil prices experienced a significant surge on Friday, bouncing back after a week-long period of decline. The upward movement was fueled by reports that Saudi Arabia, the world's top oil producer, is contemplating extending its production cuts until 2024, as per the Financial Times.

West Texas Intermediate (WTI) saw a notable increase of 4.03%, reaching $75.80 per barrel, while Brent crude, the international benchmark, rose by 4.24% to $80.70 per barrel. Earlier in the week, both WTI and Brent crude had dipped below the crucial threshold of $80 per barrel, hitting multi-month lows.

Insiders familiar with the matter revealed that Saudi officials are likely to extend the current one million barrel-per-day cut in production, possibly until spring. Previously, it was anticipated that the voluntary cuts would conclude by the end of 2023.

Leaders of OPEC+ are scheduled to meet in Vienna on November 26 to discuss potential adjustments to oil output among member countries. While falling oil prices remain the primary impetus for the production cuts, the Financial Times report suggests that some member states harbor concerns about the Israel-Palestine conflict and the worsening situation in Gaza.

According to sources, the ongoing conflict could prompt an additional reduction of a million barrels per day by OPEC+. Kuwait, Algeria, and Iran are cited as the members most affected by the crisis in Gaza.

Nevertheless, it is important to note that no final decisions have been reached regarding the extension of production cuts or the specific impact of the Israel-Palestine conflict on oil output. Sources assert that any public statements by Prince Abdulaziz bin Salam, the Saudi Energy Minister, will predominantly focus on oil market dynamics, rather than the geopolitical situation.

The potential extension of production cuts by Saudi Arabia has provided a boost to oil prices, signaling optimism among investors. As the OPEC+ meeting approaches, market participants will closely monitor any developments or announcements that could further impact oil prices in the coming months.