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Oil Prices Rebound As Saudi Denies Oil Output Hike Reports

Oil prices rose on Tuesday after Saudi Arabia denied reports of planned increases in OPEC+ supply.

A weaker dollar also offered some support after prices hit a ten-month low in the previous session.

Benchmark Brent crude futures climbed 0.8 percent to $88.18 a barrel, while WTI crude futures were up 0.7 percent at $80.61.

Saudi Arabia categorically denied on Monday the recent reports about discussions being held with regard to oil output increase during their meeting in December.

Energy Minister Prince Abdulaziz bin Salman said that there was no basis for the reports and that the OPEC+ decision on October 5 to cut production would continue to remain until the end of 2023.

The U.S. dollar edged lower in early European trade after rallying the previous day as investors fretted over a potential global recession stemming from higher interest rates and more COVID-linked restrictions in China, the world's top crude oil importer.

Authorities announced fresh COVID-10 curbs in several Chinese cities, including the capital, Beijing, raising concerns about an economic slowdown in the world's second-largest economy.

The major cities of Guangdong and Shijiazhuang ordered millions of residents to stay home, and Beijing shut parks and museums, while other cities resumed mass testing for COVID-19.

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