The benchmark Crude WTI is hovering at $81.31, up 1.59% today at 11.11 a.m. EST. after seeing a sharp decline yesterday on reports of a 500,000 barrels a day production increase by oil-producing nations.
Prices are back above $80 levels after Saudi Arabia denied the chatter and maintained that the previously announced two million barrels a day production cuts will hold till the end of next year.
The UAE too has noted that it has not had talks about changing the earlier production agreement. Oil prices continue to remain susceptible to extreme headlines as demand sentiment remains weak amid the Russia-Ukraine conflict, a stopper on Russian oil by the European Union, and fresh COVID-19 curbs in China.
The U.K. has upped its windfall tax on oil and gas providers and now Shell (SHEL) is taking a relook at its plans to spend about £25 billion in the region.
Meanwhile, natural gas price is also up 0.52% to $6.81 today as expectations of lower temperatures raise the demand outlook for the coming period.
The Energy Select Sector SPDR ETF (XLE) is now up 2.09% today already.
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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