Saudi Arabia denied reports that it was discussing an increase in oil production in time for next month's OPEC meeting. Energy Minister Prince Abdulaziz bin Salman said the current cut of 2 million barrels a day will continue through the end of 2023, and if there is a need to take additional cuts to balance supply and demand, they are always ready to step in.
This news led to crude oil futures bouncing back from earlier losses, trading 1.8% lower at $87.13 a barrel.
After the Wall Street Journal reported that OPEC members were considering a 500,000 bpd increase in output, oil futures fell 6.1%, dipping below $85 a barrel.
That would be a major turnaround after the organization decided to cut production by 2 million barrels a day in October. Back then, US President Joe Biden criticized the move, saying it threatened the world economy.
OPEC has twice lowered its global oil demand forecasts, with Prince Abdulaziz saying the group would remain cautious because of uncertainty about the state of the global economy.
Saudi Arabia has already cut oil exports sharply this month to comply with the OPEC agreement. The group's next meeting is scheduled for December 4.
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