Crude Oil Prices continue to decrease, Brent crude futures settles at $111.14 a barrel
The United States has approached oil making companies worldwide to raise their production as the oil market has hit an all time low because of Russia-Ukraine crisis.
On Wednesday, Global oil prices decreased by the most in nearly two years as the United Arab Emirates comes in support to pump more oil into the market mudded due to sanctions on Russia after its invasion on Ukraine.
Brent crude futures stabilized at $111.14 a barrel, which is the biggest one-day decline since April 21, 2020. U.S. crude futures got stable at $15.44, or 12.5%, at $108.70, which is the biggest daily decline since November, reported Reuters.
In a statement, Ambassador Yousuf Al Otaiba said, "We favor production increases and will be encouraging OPEC to consider higher production levels."
OPEC members are asked to increase production
The UAE and neighbor Saudi Arabia are among the couple of members of the Organization of the Petroleum Exporting Countries (OPEC) with spare limit that could raise yield.
The United States has asked oil making companies worldwide to raise their production.
At an industry event in Houston, U.S. Energy Secretary Jennifer Granholm said, "In this moment of crisis we need more supply. Right now we need oil and gas production to rise to meet current demand."
Disturbance caused due to Ukraine-Russia crisis
Extra stock from OPEC could make up for a stockpile shortages happened by disturbance to to Russia's oil sales as economic sanctions were forced by the United States and other governments.
Bob Yawger, director of energy futures at Mizuho said, "That (potential output hike) is not nothing. They (UAE) can probably bring about 800,000 barrels to the market very quickly, even immediately, bringing us one-seventh of the way there in replacing Russian supply."
