U.S. oil futures settled Tuesday at their highest level since November, propped up by news that Saudi Arabia and Russia have decided to extend their production cuts to the end of the year. October West Texas Intermediate crude, CLV23, climbed 1.3%, to settle at $86.69 a barrel on NYMEX. The current price of front month WTI futures is ~$86/bbl (prices based on front-month contracts ended at their highest since mid-November).

The Group of Seven (G7) and its allies decided to backpedal a regular review of Russia's oil price cap regime, even though most of Russia's crude trades above the limit on rising global crude prices. As some economists suggest, Russian oil producers have found ways to sell their oil with fewer Western ships and insurance services, making it difficult for the West to track and enforce existing price caps because companies supporting the trade are outside their remit.

Meanwhile, on the growth restraint front, the United States increased its Strategic Petroleum Reserve (SPR) by 2.9 million barrels in August, marking the largest monthly addition in over 3 years. The reserve currently contains 350.3 million barrels, with 143.5 million WTI and 206.8 million of sour crude, according to data released Tuesday by the Department of Energy (DOE).