Oil prices touched heights amid the confusion over whether major producers would help to stopple the gap in supplies from Russia.
The United Arab Emirates has come forward to thrust the members of the OPEC producer groups to raise the output, only for the UAE’s energy minister to quash hopes.
The oil price increased more than 3%, after falling by 17% on the previous days.
An analyst named Stephen Innes suggests that calling the oil market confused would be an understatement.
US President Joe Biden and several other leaders have guaranteed to try an ease the price pressures for households. Officials from the US are talking with oil producers to raise the supply.
Ambassador Yousuf Al Otaiba said in a statement, tweeted by the UAE Embassy in Washington saying that they favour the production increase and will be encourage the OPEC to consider higher production levels.
Russia has called its invasion on Ukraine a special operation.
The comments from UAE officials came as the market took into account moves by the United States to soften the sanctions on Venezuelan oil and efforts to seal a nuclear deal with Tehran.
German Economy Minister Robert Habeck issued an urgent appeal to the OPEC oil producers to increase output so that the market sees some relief.
Saudi Arabia-led OPEC and an extended group of oil producers called OPEC+, which also includes Russia has agreed upon avoiding a price war and the control over the market will be kept in a balance.
Commonwealth Bank commodities analyst Vivek Dhar said that they think that it will be exigent for OPEC+ to raise the production in such an environment.
Worries about oil and gas supplies have led to take off domestic fuel prices at the pump. Both petrol and diesel prices have hit new records in the UK.
Russia’s invasion of Ukraine added new price pressures, as sanctions have made it very difficult for other countries typically the producer of about 7% of global supplies to find buyers for its oil.
The United States have also announced total banning of Russian oil imports, where-as the UK said it would rule them out by the end of this year.
The International Energy Agency (IEA) recently agreed to release 60 million barrels of oil from strategic national reserves, but that move is not enough to respond to the recent run-up in prices.
