Global crude oil prices surged past $100 per barrel on Wednesday for the first time in more than three weeks following a warning by Saudi Arabia that oil-producing nations may have to cut output to deal with the recent drop in prices, amid fears of a global recession.
The global benchmark Brent Crude Futures index rose to $101.20 per barrel early on Wednesday morning—up nearly 5% since Monday.
The U.S. West Texas Intermediate benchmark has also risen 5.5% since Monday to $94.50 per barrel.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman told Bloomberg earlier this week that the OPEC+ group of oil-producing nations may be forced to cut output to deal with “thin liquidity and extreme volatility” in the oil market.
According to Reuters, the slashing of output may not take place immediately but will instead happen once Iran returns to the global oil markets after securing a nuclear deal with the West.
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OPEC+’s oil output in July was already 2.9 million barrels per day below its target, Reuters reported, citing unnamed sources. It is unclear if this purported deficit would impact the bloc’s plan to cut back on production.
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Source: Forbes
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