Brent crude oil rose in price after a volatile session the day before

Oil prices are rising on Tuesday after yesterday's fall to the level of $82.31 per barrel. The current Brent quote is $88.80 per barrel. North American WTI crude recovered to $81.10 after falling to $75.36 per barrel the day before. 

Yesterday, the fall in the market was facilitated by information that Saudi Arabia and other OPEC+ countries are exploring the possibility of increasing the quota for oil production in the amount of up to 500 thousand barrels per day at a meeting on December 4. Quotas may be increased due to the coming cold weather and an increase in demand for petroleum products.

However, Riyadh denied this report, saying that, on the contrary, it does not exclude a reduction in production to balance supply and demand. After that, oil prices went up.

The Minister of Energy of Saudi Arabia said that the current reduction in OPEC+ production by 2 million b/d will continue until the end of 2023. And if there is a need to take additional measures to reduce production, the Saudis are ready to renegotiate the terms. The UAE Energy Minister also said that the Emirates are not negotiating any changes to the current quota arrangements, which are in effect until the end of 2023.

The market also drew attention to the warning of the Deputy Prime Minister of the Russian Federation A. Novak that Russia will redirect supplies to market-oriented partners or reduce production, but will not supply oil and petroleum products within the price ceiling, which will be introduced by the EU countries from December 5, 2022. Novak noted that the price ceiling will inevitably lead to a drop in investment, a decrease in supply and a shortage of oil supply.