Oil pares losses after output cut remarks
Energy giant Saudi Aramco said it committed to being a net zero enterprise by 2050. photo: reuters
Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday, after Saudi energy minister said OPEC+ could cut production to confront market challenges.
Brent crude futures for October settlement fell 44 cents, or 0.5%, to $96.28 a barrel by 1638 GMT. It had fallen as much as 4.5% earlier in the day, breaking a streak of three days of gains.
US West Texas Intermediate (WTI) crude for September delivery – due to expire on Monday – was down 27 cents, or 0.3%, at $90.50. The more active October contract was down 24 cents, or 0.3%, at $90.20.
Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ has the commitment, the flexibility, and the means to deal with challenges and provide guidance including cutting production at any time and in different forms, state news agency SPA reported.
Earlier in the session, worries that aggressive US interest rate hikes may lead to a global economic slowdown and dent fuel demand had pushed down price.
Published in The Express Tribune, August 23rd, 2022.
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