Oil price rises after Biden fails to secure agreement on increasing Saudi supply
Biden hopes to get an appointment from Saudi Arabia to increase its oil output, which can cause global supply pressure.
But the Brent crude oil rose 2.6 percent to $ 103.88 on Monday after the Saudi Foreign Minister, Prince Faisal bin Farhan Al Saud, extinguished speculation for increasing output, The Guardian reported.
He said that officials at the US-Arab Summit on Saturday did not discuss oil and that OPEC+ oil cartel countries would continue to assess market conditions.Naeem Aslam, Head of Market Analyst at Avatrade, said: “The message is that OPEC+ who makes the decision of oil supply, and the cartel is not interested in what Biden is trying to achieve.
OPEC+ will continue to control oil supply, and one country alone cannot determine the supply of oil – at least that’s the message taken by traders from Biden’s visit to Saudi Arabia.”An increase in oil prices will maintain pressure on the pump, where the driver faces a record of gasoline and diesel prices.
However, the price of Brent crude oil has subsided since the highest of around $ 130 per barrel in March during the early weeks of the war in Ukraine.Oil prices ended lower last week for the fifth week in a row. Concerns about the potential for global recession have made investors escape the commodity market, The Guardian reported.
