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Oil prices will continue to rise as Saudi Arabia considers cutting oil output – Commerzbank

Oil prices have risen sharply this week following verbal intervention from Saudi Arabia. Commerzbank economists they believe that the price recovery will continue.

Saudi Arabia lends verbal support to oil

“The energy minister of OPEC’s largest producer described cutting oil production as a possible way to bring oil prices back in line with fundamentals, speaking in this context of a disconnect.”

“The impression remains that Saudi Arabia is not willing to tolerate any price drop below $90. Speculators could see this as an invitation to bet on further price increases without needing to fear a steeper price drop.” .”

“Production studies to be released next week will likely show that OPEC has once again produced noticeably less oil than agreed in August.”

Source: Fx Street

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