{"id":33096,"date":"2022-06-02T03:27:05","date_gmt":"2022-06-02T03:27:05","guid":{"rendered":"https:\/\/harchi90.com\/oil-prices-after-report-on-saudi-arabia-output\/"},"modified":"2022-06-02T03:27:05","modified_gmt":"2022-06-02T03:27:05","slug":"oil-prices-after-report-on-saudi-arabia-output","status":"publish","type":"post","link":"https:\/\/harchi90.com\/oil-prices-after-report-on-saudi-arabia-output\/","title":{"rendered":"oil prices after report on Saudi Arabia output"},"content":{"rendered":"
All eyes are on whether Saudi Arabia will raise crude production if Russia’s output significantly falls following European Union oil sanctions.<\/p>\n
Andrey Rudakov | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Oil prices dropped more than 2% following a report that Saudi Arabia is prepared to raise crude production if Russia’s output significantly falls following European Union sanctions.<\/p>\n
The Financial Times reported, citing sources, Saudi Arabia is aware of the risks of a supply shortage and that it is “not in their interests to lose control of oil prices.”<\/p>\n
Oil prices fell in the morning of Asia trading hours. International benchmark Brent crude futures were down 2.6% to $ 113.29 per barrel. US crude futures dropped 2.7% to $ 112.16 per barrel.<\/p>\n<\/div>\n
\n\n\nWhilst it’s not an outright promise, Saudi Arabia [has] seemingly thrown the West a bone.<\/p>\n
\nMatt Simpson<\/p>\n
market analyst at UK-based trading platform City Index<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n
\nEU leaders on Monday agreed to ban 90% of Russian crude by the end of the year as part of the bloc’s sixth sanctions package on Russia since it invaded Ukraine. That initially sent oil prices higher.<\/p>\n
Sources told the FT that Saudi Arabia, OPEC’s de facto leader, has not yet seen genuine shortages in the oil markets. It has so far ignored pressure from Washington to speed up production increases as oil prices soared this year.<\/p>\n
But that situation could change as economies globally reopen amid the pandemic recovery, driving demand for crude.<\/p>\n<\/div>\n
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