Crude Oil Falls as OPEC Mulls Production Ramp Up

First Published 4:39AM EST (Updated 1:17PM EST)

WTI crude oil is down today as it hovers below $80 per barrel as of 1:17 p.m. EST on a report from the Wall Street Journal that Saudi Arabia and other oil-producing countries are mulling over a possible production increase

The production ramp-up could be around 500,000 barrels a day. The development comes ahead of the key OPEC+ meeting next week and fresh on the heels of U.S. President Joe Biden noting crown prince Mohammed Bin Salman’s sovereign immunity from a lawsuit in the U.S.

An increase in production would be a change of stance from OPEC’s earlier announced production cuts of two million barrels a day.

Oil prices are tanking fast as an embargo on Russian oil by the European Union and a price cap on its oil sales are in the offing.

Further, global economic uncertainty and fresh COVID-19 measures in the Chinese city of Shijiazhuang continue to dampen expectations of a rise in demand.

The Energy Select Sector SPDR ETF (XLE) is also lower today although it has recovered some of its earlier losses.

Here are related tickers for this article:

• United States Oil Fund LP (USO)
• ProShares Ultra Bloomberg Crude Oil (UCO)
• United States Natural Gas Fund LP (UNG)
• Cheniere Energy (LNG)
• Chevron (CVX)
• ConocoPhillips (COP)
• Occidental Petroleum (OXY)

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