Oil price rises after Biden fails to secure agreement on increasing Saudi supply
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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.
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