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Oil Rally Tempered as Saudi Arabia Consider Reversal of Output Cuts

COMMODITIES

Strength in WTI and Brent crude futures continued early Wednesday, with production interruptions in the southern US states and surging energy demand to combat inclement weather keeping prices elevated.

This pattern persisted into early NY hours before the publication of a WSJ report citing Saudi Arabia advisers as saying the Kingdom will reverse a recent big production cut, after OPEC+ stated they would curb output by 1mln bpd earlier in the year.

Brent crude futures slipped back below $63.50/bbl in response before stabilising. Similar price action was noted in WTI crude futures, with prices edging below $60/bbl before rebounding into the close.

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