Oil price rises as UAE refuses plugging gap in Russian shortfall

The oil price had fallen back to about $106 a barrel at one point on Wednesday, but by Thursday morning it was trading at around $116 per barrel

PGurus Newsdesk

March 11, 2022

The oil price had fallen back to about $106 a barrel at one point on Wednesday, but by Thursday morning it was trading at around $116 per barrel

UAE will not act on its own to raise oil output; Oil prices surge

On Thursday the oil prices saw a surge amid confusion over whether major producers would help to plug a gap in supplies from Russia. Oil prices have jumped more than 30 percent since February 24, when Russia launched a military attack against Ukraine, touching $139 a barrel at one point this week.

US President Joe Biden and other leaders have pledged to try to ease the price pressures for households. Officials from the US have been in talks with oil producers aimed at boosting supply.

The United Arab Emirates had appeared to push the members of the OPEC producer group to raise output, only for the UAE’s energy minister to quash hopes. The oil price rose more than 5 percent, after a 17 percent fall on Wednesday.

“We favour production increases and will be encouraging OPEC to consider higher production levels,” Ambassador Yousuf Al Otaiba said in a statement tweeted by the UAE Embassy in Washington.

However, Energy Minister Suhail al-Mazrouei said later that the Gulf state remained committed to the existing OPEC monthly output agreement, which fixes how much crude is produced by member countries.

The oil price had fallen back to about $106 a barrel at one point on Wednesday, but by Thursday morning it was trading at around $116 per barrel.

[With Inputs from IANS]

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