Saudi Arabia extends oil production cut even as US gas prices hit nine-month highs

OPEC leader Saudi Arabia is extending its oil production cut for at least another month in a move that threatens to drive gasoline and other energy prices even higher.

An official source from the Saudi Ministry of Energy told state-run news agency SPA Thursday that the kingdom will extend this voluntary cut of one million barrels per day for the month of September.

The source told state media the cut could be extended further and the move is aimed at supporting the stability and balance of oil markets.

It's the second time the kingdom has extended the cut, which was first announced in June after a meeting of the alliance between Organization of the Petroleum Exporting Countries, Russia and other smaller producers.

At almost the same time, Russia announced plans to cut oil exports by 300,000 barrels per day, in September according to Reuters.

US oil prices rose 1.6% on Thursday to $81.05 a barrel. Brent crude, the world benchmark, jumped 1.5% to $84.50 a barrel.

Analysts say the moves by Saudi Arabia and Russia were already largely priced in to the oil market, which has been moving higher in recent weeks.