The Saudi Press Agency (SPA) quoted Energy Minister Prince Abdulaziz bin Salman denying yesterday, Monday, the validity of a Wall Street Journal report indicating that the Organization of Petroleum Exporting Countries (OPEC) is considering increasing production. The report drove prices down 5 percent.
Brent crude rose 97 cents, or 1.1 percent, to $88.42 by 1435 GMT, while US West Texas Intermediate crude increased $1.19, or 1.5 percent, to $81.23.
“Crude oil prices are trying to compensate for their losses,” said Naim Aslam, an analyst at AvaTrade. “Saudi Arabia’s denial of any discussion of increasing oil supply with OPEC and its allies has supported the market today.”
The UAE also denied talks to change the latest OPEC+ agreement on production levels, which Kuwait also denied. Algeria also announced that there were no discussions regarding the review of the OPEC + agreement.
The OPEC + group, which includes OPEC countries and producers outside it, including Russia, is scheduled to hold a meeting on the fourth of December, that is, a day before the entry into force of European and other measures by the Group of Seven regarding Russian oil.
An embargo imposed by the European Union on imports of Russian crude enters on December 5, coinciding with the entry into force of a Group of Seven plan that allows shipping service providers to help export Russian oil, but at set low prices.
Concerns about demand in light of the US Federal Reserve’s monetary tightening policy and China’s strict Covid policies limited the rise in oil prices.
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