LONDON, Nov 21 (Reuters) – Oil prices dropped to their lowest since early January on Monday after the Wall Street Journal reported that Saudi Arabia and other OPEC oil producers are discussing an output increase. Brent crude futures for January had slipped $4.07, or 4.7%, to $83.55 a barrel by 1518 GMT. U.S. West Texas Intermediate (WTI) crude futures for December were down $4.02, or 5%, at $76.06 ahead of the contract’s expiry later on Monday. The more active January contract was down $3.82, or 4.8%, at $76.29. An increase of up to 500,000 barrels per day (bpd) will be discussed at the OPEC+ meeting on Dec. 4, The Wall Street Journal reported. Reuters was not immediately able to verify the report. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, recently cut production targets and de facto leader Saudi Arabia’s energy minister was quoted this month as saying the group will remain cautious. NN: This sounded like a bogus story from the ASSHOLES at the Wall Street journal and i so said!
Riyadh denies talking oil output increase at OPEC+
Saudi Energy Minister Abdulaziz bin Salman Al Saud rejected a recent report that his country was discussing increasing oil output by half a million barrels per day with other OPEC+ producers next month. “It is well known that OPEC+ does not discuss any decisions ahead of its meetings. The current cut of 2 million barrels per day continues until the end of 2023. If there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene,” the minister was cited as saying by the Saudi Press Agency. The prices of oil futures reduced losses following the minister’s statement, rebounding to levels last seen in late September. WTI futures for settlements in January lost 2.12% to sell for $78.59 at 6:10 pm CET, while Brent contracts for deliveries in the same month fell by 2.32% to $85.84.
Russia reaffirms it won’t sell oil under price cap
Russian Deputy Prime Minister Alexander Novak reiterated on Monday the country will refrain from supplying oil to countries that agree to impose the price ceiling on the Russian commodity. “The price ceiling is just an act of unprecedented interference in the market principles of the functioning of the oil market,” Novak stressed. The deputy prime minister underscored Moscow will redirect its supplies to market-oriented partners or reduce the production of oil. The West has reportedly agreed to set a price limit on Russian oil, with the specifics of the deal expected to be worked out by December 5, when the price cap is due to take effect.