Oil rises after Saudi Arabia denies report of increased OPEC+ supply

Oil prices in early Asian Trade rose slightly following the denial of media reports that Saudis were in discussions for increasing oil supply with OPEC and its allies made by Saudi Arabia

The prices of oil slightly increased in Asian Trade recently following the denial made by Saudi Arabia regarding the reports stating that the country was holding discussions with respect to a rise in oil supply with OPEC (Organization of the Petroleum Exporting Countries) and its allies.

According to credible sources, by 0007 GMT (Greenwich Mean Time Zone), the value of brent crude futures soared 0.2%, or 17 cents, to $87.62. 

While the U.S. WTI (West Texas Intermediate) crude futures for January started trading while increasing 7 cents, or 0.1%, to $80.11 a barrel.

Apparently, both benchmarks have fallen by over $5 a barrel in the earlier session, following the reports made by the Wall Street Journal (WSJ) regarding an increase of around 500,000 barrels per day to be considered at the OPEC+ meeting on December 4th.

For the record, the prices were quickly and fully recovered after Saudi Arabia's energy minister, Prince Abdulaziz bin Salman denied the WSJ report while claiming that the country is sticking to output cuts and not discussing a potential increase in oil production with other OPEC oil producers.

OPEC and its allies (OPEC+) have cut production targets recently.

In response, the energy minister of de facto leader Saudi Arabia, also stated that the group plans to remain cautious on oil production considering the uncertainties of the global economy.

Last week, the front-month Brent crude futures spread plunged steeply, while the WTI exploded into contango, suggesting easing supply concerns.

Furthermore, the rising cases of COVID-19 in China restricted market gains as the country is struggling with the increasing number of cases nationwide, which are expected to near April peaks.

Source credit -  https://www.businesstoday.in/latest/world/story/oil-rises-after-saudis-deny-report-of-opec-supply-increase-353664-2022-11-22