Crude oil futures closed lower on Thursday after Russia pledged to continue oil supplies agreed with buyers. Confusing signals from senior United Arab Emirates (UAE) officials also contributed to volatility in oil market trading.
- WTI crude futures were down $2.68, or 2.5%, at $106.02 a barrel.
- BRENT crude futures were down $1.81, or 1.6%, at $109.33 a barrel.
Russian President Vladimir Putin said at a meeting yesterday that Russia will continue to meet its commitments to supply oil to customers. Russia supplies one-third of Europe’s natural gas and 7% of the world’s oil supplies to Europe.
Russian Foreign Minister Sergei Lavrov said Russia is not worried about the sanctions imposed by the U.S. and the West on Russian oil and gas imports. There are still many countries that want to buy energy from Russia, and Russia will not beg the West to buy oil and gas. Because Russia already has another market, he noted.
Oil markets were volatile after senior UAE officials sent confusing signals about their production stance. UAE Ambassador to the United States Yusuf Al Otaiba said the UAE was encouraging OPEC and OPEC+ to increase production. Oil prices will adjust to the tense situation as Russia faces international sanctions.
UAE Energy Minister Suhail al-Mazroi later rejected Otaiba’s remarks, stressing that the UAE will continue to abide by OPEC+ decisions and that only the UAE Ministry of Energy is responsible. He added that only this ministry is responsible for the country’s oil policy.
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Friday, March 11, 2022