On Friday, Oil prices rose 2.5 per cent after an immediate Saudi oil output boost which was not expected.

The comment during US President Joe Biden’s Middle East visit comes at a time when the spare capacity for members of the Organization of the Petroleum Exporting Countries (OPEC) is running low.
“Part of the support is that everybody and their brother who digs into the Saudi situation see that they don’t have a lot of capacity left,” said John Kilduff, partner at Again Capital LLC in New York.

Brent crude futures settled at $101.16 a barrel, rising $2.06, or 2.1 per cent, while West Texas Intermediate crude settled at $97.59 a barrel, gaining $1.81, or 1.9 per cent.

“If the market was expecting an announcement between President Biden and (Saudi Crown Prince) Mohammed Bin Salman that oil production was going to be increased, they were sorely disappointed,” said Andrew Lipow of Lipow Oil Associates in Houston.