Oil was already slipping earlier in the session from peaks not seen in more than a decade, as some investors’ fears of Russian supply disruption moderated and the International Energy Agency said oil reserves could be used even more.
Prices hit session lows after the Financial Times reported that Yousef al-Otaiba, the UAE’s ambassador to Washington, said the country favors increased production.
“That’s nothing. They can probably bring about 800,000 barrels to market very quickly, even right away, going a seventh of the way to replace Russian supply,” said Bob Yawger, director of energy futures at Mizuho.
Since the war broke out, prices had climbed more than 30%, with Brent reaching a maximum since 2008, very close to $140.
“There was definitely room for a little bit of cooling here,” Yawger said. “At these levels, you were going to run out of buyers.”
US President Joe Biden on Tuesday imposed an immediate ban on Russian oil, but major European nations have not joined in, largely because they are more reliant on that crude.
The head of the International Energy Agency said last week that his decision to release 60 million barrels of oil from strategic reserves was “an initial response.”
“If necessary, if our governments so decide, we can bring more oil to the markets, as part of the response,” said Fatih Birol, head of the IEA.
Source: Ambito
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