UPDATE: Saudi Arabia denies reports of crude output hike talks next month
Quantum Commodity Intelligence - Saudi Energy Minister Prince Abdulaziz bin Salman has denied media reports that the world's biggest oil exporter is discussing with other OPEC producers an output increase of 500,000 bpd.
In a statement released by the Saudi Press Agency, the official denied reports by the Wall Street Journal that a boost in supply was said to be on the table ahead of the group's meeting in early December.
He said: "It is well known, and no secret, that OPEC+ does not discuss any decisions ahead of its meetings."
"The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023 and if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene."
Crude oil futures have been extremely volatile on the reports, marked at a 10-month low at the cash market close for oil products in London at 1630 local time.
The timestamp is important as it feeds into the closing price for products such as gasoline, diesel and jet fuel.
Such a flagged output increase would mark a partial reversal of a controversial decision to cut production by 2 million bpd at the most recent OPEC+ meeting, although actual cuts are expected to be closer to 1 million bpd.
The White House said at the time production cut undermined global efforts to blunt Russia's war in Ukraine, and it was also viewed as a personal snub to President Biden, coming before the congressional midterm elections at a time of high inflation.
Saudi-US relations hit a low point over oil-production disagreements this year, with the US threatening several legislative measures, including the NOPEC bill.
Talk of a production increase has emerged after the Biden administration told a federal court judge that Saudi Crown Prince Mohammed bin Salman should have sovereign immunity from a US federal lawsuit related to the brutal killing of Saudi journalist Jamal Khashoggi.
The immunity decision amounted to a concession to Prince Mohammed, bolstering his standing as the kingdom's de facto ruler after the Biden administration tried for months to isolate him.
