By Scott Kanowsky
Investing.com -- Shares in European energy firms rose on Tuesday after Saudi Arabia denied news reports that OPEC and its allies are eyeing a potential output increase at their December 4 meeting.
Oil and gas stocks climbed by around 3% in morning trading on Tuesday, with key sector players like BP PLC (LON:BP), Shell PLC (LON:SHEL), Spain's Repsol (BME:REP), and TotalEnergies SE (EPA:TTEF) in France all jumping towards the top of the pan-European STOXX 600.
According to the Wall Street Journal and other outlets, the oil group is discussing a production hike of up to 500,000 barrels a day.
Prince Abdulaziz bin Salman, the energy minister of OPEC+'s de facto leader Saudi Arabia, rejected the rumors, saying that the organization does not discuss any decisions ahead of its meetings.
He added that OPEC+'s move last month to slash production by two million bpd would remain in place until the end of 2023. Washington blasted the cuts, accusing OPEC of "aligning" with Russia despite worldwide efforts to blunt Moscow's ability to fund the war in Ukraine.
The rise would also come just a day before the European Union is set to roll out an embargo on Russian oil exports and G7 countries may potentially place a cap on Russian crude prices.