Saudi officials deny reports about OPEC+ oil output hikes

Yahoo Finance reporter Ines Ferre shares the latest on the oil markets amid the Saudis denying reports of a possible OPEC+ price hike.

Video transcript

DAVE BRIGGS: Oil futures pared earlier losses after Saudi Arabia denied a report that it's discussing oil production increases after historic cuts. Yahoo Finance's Ines Ferre here with the latest. It's been an interesting day in the oil market, Ines. What's the latest?

INES FERRE: Yeah, Dave, to say the least, an interesting day after that headline earlier this morning. Take a look at WTI and Brent crude futures, how they sank about 5% earlier this morning after that headline that you just mentioned. Now Saudi Arabia coming out and refuting that report that Saudi Arabia and other OPEC members were going to increase production.

So you can see, after Saudi Arabia refuted that, you saw oil futures going back up. But nonetheless, a little slight dip today is what we're seeing with oil futures. You do have concerns about demand, China, COVID cases that are rising in cities like Beijing. Even though you have that European ban on Russian oil as of December 5, there's still demand concerns weighing on oil. You've got the G7 countries that are talking about a price cap, that they will have a price cap on Russian oil in place, but it's still unclear how that price cap will take place.

So basically, what you're seeing is some uncertainty surrounding supply going forward. We are going into the winter months, but Europe has been able to beef up its inventory when it comes to natural gas and also diesel. So maybe the supply side-- on the supply side, the market's a little bit concerned. Perhaps there is enough supply to go around. Guys.

SEANA SMITH: All right, Ines, thanks so much for breaking that down. Again--