Oil prices slide as Saudi Arabia reportedly mulls output hike

Oil prices were being pushed lower on Monday afternoon, on reports that Saudi Arabia and its OPEC allies were mulling an increase in output.

According to the Wall Street Journal, an increase in production of up to 500,000 barrels per day was being considered ahead of the 4 December meeting of the OPEC cartel and its allies.

It said the decision would come just one day before a new European Union embargo on Russian oil, as well as G7 plans to implement a price cap on Russian crude.

The WSJ also noted that an increase would at least partially reverse OPEC’s controversial two-million barrel daily cut agreed at its October meeting, and could help thaw relations with the Biden administration in Washington.

At the time, the White House said OPEC’s output cut went against global moves to economically punish Russia for its ongoing invasion of Ukraine.

Brent crude futures were last down 1.13% on ICE at $86.63 per barrel, while the NYMEX quote for West Texas Intermediate was 0.92% lower at $79.34.

Reporting by Josh White for Sharecast.com.