Oil price rises again due to fears over Russian shortfall
By People.Reporter, March 11, 2022
Oil prices rose yesterday amid confusion over whether major producers would help to plug a gap in supplies from Russia.
The United Arab Emirates had appeared to push 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 3 per cent, after a 17 per cent fall on Wednesday. “To suggest the oil market is confused would be an understatement,” said analyst Stephen Innes.
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.
“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.
But the Energy minister 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.