Crude oil prices rose sharply on Tuesday, extending recent gains, after Saudi Arabia and the United Arab Emirates indicated that can barely increase oil production.
Libya and Ecuador flagged potential output cuts on political unrest and the United Arab Emirates' Energy Minister said the nation has no spare capacity. The UAE Energy Minister said the country is producing near to the maximum production capacity based on its current OPEC+ production baseline (3,168 mbopd) which UAE is committed by until the end of the agreement.
The move by Western governments to explore ways to cap the price of Russian oil, hopes for improved demand for oil in China after the country halved the length of mandatory quarantine for inbound travelers contributed significantly to the jump in oil prices.
West Texas Intermediate crude oil futures for August ended higher by $2.19 or about 2% at $111.76 per barrel.
Brent crude settled at $117.98 a barrel today, gaining $2.89 or about 2.5%.
