The price of crude oil rose on Monday after US President Joe Biden came away from talks in the Middle East without an agreement on raising supply.
Biden had hoped to secure a promise from Saudi Arabia to increase its output of oil, which could lead to easing of global supply pressures.
But Brent crude rose 2.6 per cent to $103.88 on Monday after Saudi Arabia’s Foreign Minister, Prince Faisal bin Farhan Al Saud, quelled speculation over an output increase, The Guardian reported.
He said that officials at the US-Arab summit on Saturday did not discuss oil and that the Opec+ oil cartel nations would continue to assess market conditions.
Naeem Aslam, chief market analyst at Avatrade, said: “The message is that it is Opec+ that makes the oil supply decision, and the cartel isn’t remotely interested in what Biden is trying to achieve.
“Opec+ will continue to control oil supply, and one country alone cannot determine the oil supply – at least that is the message that traders have taken from Biden’s visit to Saudi Arabia.”
The increase in oil price will keep up the pressure at the pumps, where drivers have faced record petrol and diesel prices.
However, Brent crude prices have eased since the highs of about $130 a barrel in March during the early weeks of the war in Ukraine.
Oil prices ended lower last week for the fifth consecutive week. Concerns over the potential for a global recession has sent investors fleeing from commodity markets.