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Oil Markets Recover After WSJ Cut Claims Disputed by Saudi

OIL

Saudi Arabia has denied WSJ headlines that OPEC intends to increase output by 500,000 bpd at its next meeting December 5.

  • The WSJ report cited unidentified OPEC delegates in a news report yesterday causing crude prices to tumble 5%. The news was swiftly refuted by the Saudi Arabian Energy Minister Prince Abdulaziz allowing crude markets to recover.
  • The sentiment had weighed on already weak markets that had been reflecting on further lockdown news out of China – slamming demand recovery outlooks.
  • "It is well-known that OPEC+ does not discuss any decisions ahead of the meeting," he said.
  • "The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is need to take further measures by reducing production to balance supply and demand we always remain ready to intervene," he added.
  • The WSJ had said the production increase had been brought up after Joe Biden told a federal court judge that Saudi’s MBS should have sovereign immunity from a US federal lawsuit related to the killing of Saudi journalist Jamal Khashoggi.
  • Saudis refusal to help with production increases has soured relations with the US after Biden had arranged a trip to the Middle East this summer to ask key leaders for support – before following up with cuts.

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