Oil prices rise after Saudi Arabia denies report on talks with Opec+ to raise output

Oil prices rise after Saudi Arabia denies report on talks with Opec+ to raise output

Oil prices gained on Tuesday after Saudi Arabia denied a media report that it was discussing a crude output increase with the Opec+ group of oil-producing countries, which caused the market to tumble a day earlier.

Brent, the benchmark for two thirds of the world’s oil, was trading 1.03 per cent higher at $88.35 a barrel at 12.43pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 0.76 per cent at $80.65.

Prices fell about $5 late Monday after the Wall Street Journal reported that top crude exporter Saudi Arabia was considering raising output targets by 500,000 barrels per day at the Opec+ meeting on December 4.

“There is simply too much drama, and false information out there and traders are confused about it,” said Naeem Aslam, chief market analyst at Avatrade.

The Journal’s report “made no sense at all when it was released”, Mr Aslam said.

Crude futures rebounded to about $88 a barrel after Saudi Energy Minister Prince Abdulaziz bin Salman said the current output cut of 2 million bpd would continue until the end of 2023.

“It is well known and no secret that Opec+ does not discuss any decisions ahead of its meetings,” Prince Abdulaziz was quoted as