Blog Business Entertainment Environment Health Latest News News Analysis Opinion Science Sports Technology World
UAE’s supply boost support leads to a surge in Oil prices

The United Arab Emirates recently stated that it supported increasing the production of oil. This resulted in the plunge in oil prices. UAE’s statement resulted in a 17% fall of an international benchmark, Brent Crude. Brent crude is a member of Opec, a powerful oil cartel.


The fall followed weeks of the plunge in oil prices due to supply disruptions that resulted from Russia’s invasion of Ukraine. The constantly rising prices have narrowed down families all around the world financially.


US President, Joe Biden and other world leaders have been putting efforts to control the price tension for households. Many US officials have been talking with oil producers aimed at boosting supply.


The UAE Embassy in Washington tweeted a statement by Ambassador Yousuf Al Otaiba. The statement quoted that they favor production increases and will encourage Opec to consider high production levels.


The pandemic already saw the demand for oil collapsing. A rebound in demand saw a rise as energy prices started soaring for a year now. In addition, the invasion of Ukraine by Russia added new pressures to energy prices. Sanctions imposed by countries around the world have made it difficult for the nation that produces 7% of global supplies to find buyers for its oil.


Countries like the US, Canada, and the UK imposed bans on Russian oil imports. The UK asserted that it would phase out oil imports from Russia by year-end.


Since 24 Feb, oil prices have leaped to more than 30%, touching $319 (105 Pounds) at one point this week. And the market saw Oil prices settling down at about 12% at about $112, a barrel.


The International Energy Agency (IEA) has announced that 60 million barrels of oil from strategic national reserves would be released. On Wednesday, the agency also stated that the oil reservoir may be tapped further. As part of the answer, Fatih Birol, the IEA's Executive Director, emphasized that if there is a need and the government determines so, they can deliver extra oil to the markets.


The UAE statement follows one week after Opec rebuffed calls to increase production levels that stated that it would stick to an earlier plan to gradually increase output.


Asia saw jumps in Stocks following gains in the US and Europe. Japan’s Nikkei index stood at more than 3% higher in morning trade. The Hang Seng in Hong Kong rose to about 2.3%.


 


 


 


Share This Post On

Tags: #war #oil



0 comments

Leave a comment


You need to login to leave a comment. Log-in
TheSocialTalks was founded in 2020 as an alternative to mainstream media which is fraught with misinformation, disinformation and propaganda. We have a strong dedication to publishing authentic news that abides by the principles and ethics of journalism. We are a not-for-profit organisation driven by a passion for truth and justice in society.

Our team of journalists and editors from all over the world work relentlessly to deliver real stories affecting our society. To keep our operations running, we depend on support in the form of donations. Kindly spare a minute to donate to support our writers and our cause. Your financial support goes a long way in running our operations and publishing real news and stories about issues affecting us. It also helps us to expand our organisation, making our news accessible to more everyone and deepening our impact on the media.

Support fearless and fair journalism today.


Related