New York November 21 2022: Oil fell by more than $4 a barrel on Monday to their lowest since early January as Saudi Arabia and other OPEC oil producers are discussing an output increase, the Wall Street Journal reported, citing the group's delegates.
An increase of up to 500,000 barrels per day is now under discussion for OPEC+’s Dec. 4 meeting, the report said.
Brent crude was down $4.27, or 4.87%, at $83.35 a barrel by 1530 GMT, having touched its lowest since January 10 at $80.87. U.S. West Texas Intermediate (WTI) crude futures for December were down $4.02, or 5%, at $76.06 ahead of the contract's expiry later on Monday. The more active January contract was down $3.82, or 4.8%, at $76.29.
It said talk of a production increase has emerged after U.S. President Joe Biden's administration told a federal court judge that Saudi Crown Prince Mohammed bin Salman should have sovereign immunity from a U.S. federal lawsuit related to the 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, the Wall Street Journal said.