Oil prices fall as UAE supports output hike



Global oil prices fell on Wednesday by the most in nearly two years after OPEC member the United Arab Emirates said it supported pumping more oil into a market roiled by supply disruptions due to sanctions on Russia after it invaded Ukraine.

Brent crude futures settled down $16.84, or 13.2 per cent, at $111.14 a barrel, their biggest one-day decline since April 21, 2020. U.S. crude futures ended down $15.44, or 12.5 per cent, at $108.70, their biggest daily decline since November.

“We favor 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.

The UAE and neighbour Saudi Arabia are among the few members of the Organization of the Petroleum Exporting Countries with spare capacity that could increase output.

The United States has called on oil producers worldwide to increase production if they can.

We favor 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.

The UAE and neighbour Saudi Arabia are among the few members of the Organization of the Petroleum Exporting Countries with spare capacity that could increase output.

The United States has called on oil producers worldwide to increase production if they can.

“In this moment of crisis we need more supply,” U.S. Energy Secretary Jennifer Granholm told attendees at an industry event in Houston.

“Right now we need oil and gas production to rise to meet current demand.”