Saudis Deny Plans to Boost Oil Production as Gas Prices Continue to Slide Ahead of Thanksgiving – By Tim Smart (US News) / Nov 22, 2022
Oil prices are under pressure from weak global demand and a rise in COVID-19 cases in China.
Saudi Arabia dashed hopes on Monday for any change to planned production quotas for oil, as the price of black gold reached the lowest levels in months.
Brent crude, the international benchmark, rose to $88 a barrel early Tuesday after the Saudi energy minister, Prince Abdulaziz bin Salman, refuted an article in The Wall Street Journal that said the group of oil producers known as OPEC+ would increase production at its Dec. 4 meeting. The group, composed of the OPEC cartel and a handful of oil-producing allies led by Russia, had announced a production cut last month.
“It is well known, and no secret, that OPEC+ does not discuss any decisions ahead of its meetings,” bin Salman said Monday through state news agency SPA. “The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene.”
Oil is coming under pressure from a slowdown in the global economy dampening demand. More cases of COVID-19 in China, as well as reduced economic activity in South Korea, had brought oil prices to 10-month lows on Monday. Oil is now trading at $50 a barrel less than it was following Russia’s invasion of Ukraine in late February.
