Oil prices fell most in two years after OPEC member the United Arab Emirates said it supported pumping more oil into a market amid supply disruptions due to sanctions on Russia after it invaded Ukraine.
U.S West Texas Intermediate (WTI) crude futures in Asian hours are at $108.72 per barrel while Brent is trading at $112.72 per barrel.
UAE Energy Minister Suhail al-Mazrouei said on Twitter late on Wednesday his country is committed to the agreement by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to ramp up oil supply gradually following sharp cuts in 2020.
“The UAE believes in the value OPEC+ brings to the oil market,” al-Mazrouei said.
His comments came just hours after prices slumped on comments by UAE’s ambassador to Washington that his country will be encouraging OPEC to consider higher output to fill the supply gap due to sanctions on Russia after it invaded Ukraine.
“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.
Besides the UAE and Saudi Arabia along with some other OPEC+ members has spare capacity that could aid in increasing output.
