The price of Texas intermediate oil (WTI) rose 0.7% on Tuesday to $80.95 a barrel, after Saudi Arabia denied on Monday that OPEC countries are considering a production increase of 500,000 barrels per day.
At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for January delivery rose $0.91 from the previous day’s close.
Crude on Monday pointed lower on news of rising Covid-19 cases in China and after The Wall Street Journal reported that Saudi Arabia and other members of the oil cartel are discussing a possible production increase. for their December meeting.
However, after the Saudi energy minister, Abdulaziz bin Salmán, denied the veracity of said report, the downward trend of the day was reversed and the price of oil began to change its trend, which on Tuesday continued to rise favoring for the price of black gold to recover the level of 80 dollars.
“Crude prices are still rebounding from Saudi Arabia’s denial yesterday that OPEC was considering a production increase,” Oanda analyst Ed Moya said in a note on Tuesday.
Likewise, Moya stressed that “oil is having a tug of war with concerns about demand in China due to covid-19.” Fears that “are offset by what appears to be a Saudi Arabia determined to keep the oil market tight,” he added.
According to The Wall Street Journal, with an eventual increase in production, OPEC would try to anticipate the consequences of the European embargo against Russian oil for its invasion of Ukraine that will come into force in December.
Elsewhere, natural gas futures for January added 18 cents to $7.40, and gasoline futures due the same month rose 7 cents to $2.44 a gallon.