Prices were generally lower Monday, but ended well off session lows after Saudi Arabia’s energy minister denied a news report that the Organization of the Petroleum Exporting Countries and their allies were weighing a production increase.Prices were generally lower Monday, but ended well off session lows after Saudi Arabia’s energy minister denied a news report that the Organization of the Petroleum Exporting Countries and their allies were weighing a production increase.
The Wall Street Journal, citing unnamed delegates, first said Saudi Arabia and other producers from OPEC were discussing an output increase of as much as 500,000 barrels a day. Such a move would help ease tensions with the Biden administration and keep energy flowing as new efforts to curtail Russia’s oil industry take effect.
The Commerzbank team said a cut will probably be more than 1 million barrels per day if all the countries whose production levels were recently in line with the agreement comply with the reduced production target applicable from November.