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Saudi Arabian Energy Minister Prince Abdulaziz bin Salman on
Monday was also quoted by state news agency SPA as denying a
Wall Street Journal report that said OPEC was considering
boosting output and sent prices plunging by more than 5%.
Brent crude rose $1.16, or 1.3%, to $88.61 by 1142 GMT. U.S.
West Texas Intermediate (WTI) crude was up $1.00, or 1.3%, at
$81.04.
"Crude oil prices are trying to recover their losses," said
Avatrade analyst Naeem Aslam. "That Saudi Arabia has denied
there was any discussion about an increase in oil supply with
OPEC and its allies has supported the market today."
The United Arab Emirates, Another big OPEC producer, denied it
was holding talks on changing the latest OPEC+ agreement, while
Kuwait said there were no talks on an output hike.
OPEC, Russia and other allies, known as OPEC+, meet on Dec. 4, a
day before the start of European and G7 measures in retaliation
for Russia's invasion of Ukraine, which could support the
market.
On Dec. 5. a European Union ban on Russian crude imports is set
to start, as is a G7 plan that will allow shipping services
providers to help to export Russian oil, but only at enforced
low prices.
"The critical risk to a price cap policy is the potential for
Russian retaliation, which would turn this into an additional
bullish shock for the oil market," Stephen Innes, managing
partner at SPI Asset Management, said in a report.
Concerns over oil demand in the face of the U.S. Federal
Reserve's interest rate hikes and China's strict COVID lockdown
policies limited the upside.
Beijing shut parks, shopping malls and museums on Tuesday and
more Chinese cities resumed mass COVID testing. The Chinese
capital on Monday warned that it is facing its most severe
challenge of the pandemic and tightened rules for entering the
city.
In focus later will be the latest weekly snapshots of supply in
the United States, which are expected to show crude inventories
fell by 2.2 million barrels. The American Petroleum Institute's
report is out at 2130 GMT. [EIA/S]
(Additional reporting by Laura Sanicola and Isabel Kua; Editing
by David Goodman)
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