Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
👀 Bezos, Buffett & Berkowitz: What's in Their Portfolios? Unlock Data
Crude oil higher; Saudi Arabia dismisses output hike report
Published Nov 22, 2022 08:49AM ET
© Reuters.
By Peter Nurse
Investing.com -- Oil prices rose Tuesday, rebounding from recent hefty losses after Saudi Arabia denied that a group of top producers was considering boosting output, implying that global supply would remain tight.
By 08:50 ET (13:50 GMT), U.S. crude futures traded 1.9% higher at $81.53 a barrel, while the Brent contract rose 1.9% to $89.09.
Both benchmarks had slumped 5% on Monday, with the U.S. contract falling to its lowest level since early January, after a Wall Street Journal report stated that the desert kingdom, a top exporter, is looking at urging the group to increase production when it next meets.
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman, the de facto leader of OPEC+, was quick to deny the report, saying that the group was sticking with output cuts and could take further steps to balance the market.
The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, decided to cut output by 2 million barrels a day at its meeting last month.
"It would be an odd move from OPEC+ to increase supply when there is still so much demand uncertainty, and while there is still so little clarity on what the full impact of the EU ban on Russian oil will be," said analysts at ING, in a note.
OPEC+ meets on Dec. 4 to decide production levels moving into the new year, a day before a European Union ban on Russian crude imports along with a G-7 price-cap plan are scheduled to start.
"It is expected that the market will receive more clarity on the G-7 price cap this week, including the level at which the group plans to set the cap," ING added.
That said, these gains remain tentative, given the uncertainty surrounding oil demand growth in China, the world's top crude importer, as the country's COVID-19 case count surged back toward the levels last seen in April, including the first deaths in six months.
The American Petroleum Institute is scheduled to release its weekly estimate of U.S. crude inventories later in the session, after reporting a draw of nearly 6M barrels last week.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.