Oil prices to climb further as Saudi Arabia considers cutting oil production – Commerzbank

The oil price has risen sharply this week following Saudi Arabia’s verbal intervention. Economists at Commerzbank believe that the price recovery will continue.

Saudi Arabia lends verbal support to oil 

“The energy minister of the largest OPEC producer described cutting oil production as one possible way to bring oil prices back into alignment with fundamentals, talking in this context of a disconnect.” 

“The impression remains that Saudi Arabia is not willing to tolerate any price slide below $90. Speculators could view this as an invitation to bet on further price rises without the need to fear any more pronounced price declines.” 

“The production surveys due to be published next week are likely to show that OPEC again produced noticeably less oil than agreed in August.”