Saudi Arabia denies plans to increase oil production

U.S.

(NewsNation) — Gas prices are down, but oil prices have fluctuated over conflicting reports about production cuts from OPEC+.

GasBuddy reported gas prices are down 20 cents from a month ago, with the national average for a gallon of regular gas dropping to $3.65.

The decrease in energy prices can be partially attributed to economic concerns around the world and a decrease in demand from China as it deals with a COVID-19 outbreak.

Meanwhile, oil prices have dipped then risen again on conflicting reports about production increases.

The Wall Street Journal reported OPEC+ was considering boosting production by a half a million barrels of oil a day, dropping oil prices to $75 a barrel.

Prices jumped again, however, as Saudi Arabia refuted the rumors and even suggested further cuts were possible.

Saudi Arabia said that OPEC+ was sticking with oil output cuts and could take further measures to balance the market amid falling prices, denying a report it was considering boosting output, according to state news agency SPA.

Last month, OPEC+ unexpectedly decided to reduce output targets sharply. It would be unusual for the group to increase production at a time of declining prices and growing concern about the economic outlook.

Prince Abdulaziz was also quoted as saying OPEC+ was ready to reduce output further if needed.

“The current cut of 2 million barrels per day by OPEC+ continues until the end of 2023, and if there is need to take further measures by reducing production to balance supply and demand we always remain ready to intervene,” he said.

This comes as the holiday travel season kicks off in the U.S., with millions of Americans taking to the roads to visit family over the Thanksgiving weekend regardless of fuel prices.

Reuters contributed to this story.

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