Oil moved up and down on news of UAE-Saudi Arabia agreement
Oil experienced wild price swings shortly after 12:00 pm BST. News hit the market saying that the United Arab Emirates and Saudi Arabia have reached an agreement on baseline production levels for the UAE. A new baseline production for the United Arab Emirates that will be used in future oil deals was increased to 3.65 million barrels. It is also rumored that as the stand-off between Saudi Arabia and the United Arab Emirates was resolved, OPEC+ will schedule a meeting soon.
Oil prices moved higher in a knee-jerk move. However, a strong downward move followed and pushed WTI price towards $74 per barrel while Brent price hit a low of $75.30. Nevertheless, bulls started to regain control and after 15 minutes of wild swings, oil traded more or less in the same place as it traded before the news arrived.
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Oil experienced wild price swing on the back of Saudi Arabia-UAE deal rumours. Source: xStation5
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