Oil reversed losses to trade near $116 as OPEC+ ministers agreed to boost supply increases by around 50%, after prices dropped on reports U.S. President Joe Biden is likely to visit Saudi Arabia this month and that the kingdom is ready to pump more crude.
West Texas Intermediate fell more than 3%, while Brent traded as low as $112.80, before the start of the meeting on Thursday. Ministers from the group agreed to add 648,000 barrels a day of oil to the market in July and August, up from 432,000 barrels a day in recent months, delegates said, asking not to be named because the discussions were private.
The earlier decline followed a steep rise in prices last month and comes amid signs that the strained relationship between Saudi Arabia, the world’s biggest oil exporter, and the U.S. is improving. Biden will almost inevitably meet de facto Saudi ruler Crown Prince Mohammed bin Salman, who he has so far shunned, if he does travel to the country. That may pave the way for a production boost from the kingdom and help lower U.S. fuel prices, which have soared to record highs, putting pressure on Biden ahead of November’s mid-term elections.
