The United Arab Emirates (UAE) has reportedly called on OPEC allies to increase production in order to reduce supply concerns due to sanctions imposed on Moscow following Russia’s invasion of Ukraine. Since then, oil prices have fallen by more than 12 percent.
According to a report, global oil prices have fallen to an all-time high, easing the fears of some investors about disrupting Russian supplies, the International Energy Agency said. That oil reserves could be further utilized. The fall in prices came after the Financial Times reported that the UAE’s ambassador to Washington, Yousef Al-Atiba, had said that the UAE was in favor of increasing oil production.
Bob Yawger, future director of energy at Mizuho, said it was not uncommon for him to bring about 800,000 barrels to market very quickly, even if he could quickly bring one-seventh of Russian supplies to market. Brent oil fell 12.4 percent to 112.15 a barrel, while the WTI fell 11.4 percent to 109.59 a barrel.
Following Russia’s attack on Ukraine, the world’s second-largest crude oil exporter, the world responded to the attacks in the form of other financial sanctions, including a ban on oil imports from Russia. Since then, global oil prices have risen more than 30 percent to 2008 139 a barrel, the highest level since 2008.
Brent gained 28% in the last 6 days of trading and the Relative Strength Index, which points to the boom, showed that the market was ready to sell shares. Bob Yaoger said there was certainly room for a slight reduction at this level, in which case buyers were running out.
US President Joe Biden on Tuesday imposed an immediate ban on Russian oil, but major European countries did not join the decision, largely because they are heavily dependent on Russian oil.
Britain has said it will cut Russian imports, while several other buyers have stopped buying Russian crude. According to financial institution JPMorgan, Russia is facing a challenge in finding buyers for about 70% of its oil sales.