Saudi Arabia oil surge

The Wall Street Journal's news that Saudi Arabia is evaluating an increase in oil production and the denial of the news by Saudi officials have caused volatility in oil prices. Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman stated that the current 2 million barrels per day production cut will continue until the end of 2023. The prince, who denied the WSJ news, commented, "We are prepared to make further cuts if supply-demand dynamics require it." During the flow of news and denials, US crude oil prices have moved in a range of around $5 this week. After the WSJ news, the WTI active contract, which tested $75 at one point on Monday evening, erased its barrel price losses and held above $80. US crude oil is still down around 1.6 percent in three trading days due to the thought that the Covid-19 situation in China will negatively affect demand. OPEC+ will meet in December to decide on supply. According to RBC Capital Markets, OPEC+ will continue on its current path until there is a clear problem in Russian supply. OPEC+ will want to see the impact of the European Union's oil sanctions on Russia, analysts including Christopher Louney wrote in a note on Monday.