Oil markets endure rollercoaster ride as OPEC rejects reports of production hike
Oil prices whipsawed in today’s trading, before settling near this morning’s initial prices on both major benchmarks.
Prices dipped to their lowest since early January, before rebounding as reports varied over whether Saudi Arabia and other OPEC oil producers are considering a half-million barrel daily output increase.
Brent Crude and WTI Crude prices both plummeted more than $5 per barrel amid media reports OPEC and its allies were considering a production boost of up to 500,000 barrels per day
This saw Brent Crude fall from $87.09 per barrel to $82.41 per barrel in a couple of hours this lunchtime, before prices recovered back to near previous levels when Saudi Arabia ruled out a production hike.
Saudi Arabian energy minister Prince Abdulaziz bin Salman confirmed the country is not discussing a potential oil output increase with other OPEC oil producers.
WTI Crude slipped from $79.50 per barrel to $75.13 over a comparable time period, before also rebounding in afternoon trading.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, unveiled swingeing production cuts last month of 2m barrels per day to tame sliding prices.
Prices were down across Brent Crude and WTI Crude 0.33 per cent and 0.65 per cent in evening trading respectively, trading at $87.29 per barrel and $79.74 per barrel.