Saudi Arabia Denies OPEC Discussing Oil Increase a production cut announced last month would remain in effect until the end of 2023, refuting a report that oil producers were debating raising production for their upcoming conference.
The OPEC+ cartel, which is co-led by Saudi Arabia and Russia, was said to be mulling a “increase of up to 500,000 barrels per day” early on Monday, according to The Wall Street Journal.
However, the official Saudi Press Agency said on Monday night that Prince Abdelaziz bin Salman, the minister of energy, “categorically denies” the claim.
Saudi Arabia Denies OPEC Discussing Oil Increase
Prince Abdelaziz was quoted by SPA as saying, “It is well known and no secret that OPEC+ does not disclose any decisions prior to its meetings.
The following OPEC+ gathering is slated on December 4.
A rise in production would partially undo the two million barrel per day reduction that the bloc announced in October.
This action aggravated relations between Riyadh and Washington, a longtime friend, as Washington mocked Riyadh for “aligning with Russia” in the conflict in the Ukraine.
Additionally, while oil prices are already falling, more oil would be produced.
On Monday, the price of oil fell more than 5% and hit its lowest point since January as a result of predictions that Chinese consumption would suffer.
Saudi Arabia Denies OPEC Discussing Oil Increase In response to criticism from Washington, Saudi authorities have vehemently defended the latest production decrease, asserting that it was solely motivated by market conditions and might change as the market changed.
On Monday, Prince Abdelaziz reaffirmed his stance.
“The existing cut of 2 million barrels per day by OPEC+ continues until the end of 2023,” he said. “We always remain ready to act if there is a need to take further measures by cutting output to balance supply and demand.”