Oil trims losses after reports of OPEC production hike denied

Oil prices pared their losses today, Nov. 21, after denial of reports about OPEC discussing the possibility of increasing crude production at the next meeting.

Saudi Energy Minister Prince Abdulaziz bin Salman denied the Kingdom's discussion with the OPEC+ producers on increasing oil production, indicating that the coalition does not discuss any decisions before the meetings, Saudi Press Agency reported.

Crude prices had fallen to their lowest level in 10 months earlier in the session, after the Wall Street Journal published a report indicating that the Organization of the Petroleum Exporting Countries (OPEC) is discussing increasing oil production by 500,000 barrels per day.

China recorded its first virus-related death in nearly six months on Nov. 19, and two more cases were reported on Nov. 20, raising fears of another wave of restrictions in the world's largest oil importer.

Meanwhile, Goldman Sachs cut its forecast for the price of Brent crude during Q4 2022 by $10 a barrel to $100, indicating that expectations are partly driven by the possibility of further anti-virus measures in China as cases rise, Bloomberg reported.

Brent crude futures for January delivery fell 0.2%, or 17 cents, to settle at $87.45 a barrel, after reaching $82.31 earlier in the day. WTI crude for December delivery decreased by 0.4%, or 35 cents, to close at $79.73 a barrel.