Today, oil prices gained some ground following an overnight retreat. Reports that Saudi Arabia reassured Canada on oil supplies received some focus. Saudi Arabia’s energy minister Khalid Al-Falih has stated that the recent dispute between the two countries will not disrupt oil supplies, According to Khalid Al-Falih:“The current diplomatic crisis between Saudi Arabia and Canada will not, in any way, impact Saudi Aramco’s relations with its customers in Canada,” emphasizing that the country has a “firm and long-standing policy” that petroleum supplies are not influenced by political considerations.
His comments were a reaction toward Canada asking the Saudi Kingdom to release a group of rights activist last week. In reply to Canada’s demand, Saudi Arabia was infuriated and explore the Canadian ambassador on Sunday and froze new trade with Canada, while also halting the state-backed educational and medical programs in the northern country. The Saudi Kingdom-Canada trade despite continued on Wednesday as Saudi foreign minister Adel al-Jubeir has requested Canada fix a big mistake before proceeding to any mediation efforts.
Crude oil prices retreated pretty hard during the Wednesday trading session, reaching down toward a significant support level of $67 following the EIA inventories coming less bullish than expected.
New York-traded WTI crude futures trade at $67.00 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades at $72.40 a barrel.