November 23, 2024

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Oil plunges 17% as UAE and Iraq prepare to boost production

Oil plunges 17% as UAE and Iraq prepare to boost production

  • Oil fell to session lows
  • The United Arab Emirates prefers to increase oil production – the media, citing its ambassador to the United States
  • Iraq can increase production if requested by OPEC + – dealers citing media
  • Prices were already low on the session due to profit taking

BENGALURU (Reuters) – Oil prices fell as much as 17 percent after media reports said OPEC producers the United Arab Emirates and Iraq said they would support increased production, which could offset some supply disruptions caused by sanctions on Russian oil after its invasion. Ukraine.

Brent crude fell more than 17 percent, or $22, to a session low of $105.60, during sharp selling. Benchmark crude recovered some losses by 1:03 pm ET (1803 GMT), dropping $13.29, or 10.4%, to $114.69 a barrel. And US crude fell 12.01 dollars, or 9.7 percent, to 111.69 dollars.

Wintershall DEA pump cranes are photographed in Emlichheim near the northern German city of Meppen, March 9, 2022. REUTERS/Fabian Bemer

Prices hit session lows after traders cited media reports of an Iraqi minister claiming that the country was ready to increase production if requested by OPEC+. Reuters could not immediately verify the accuracy of the report.

The Financial Times had previously reported that Yousef Al-Otaiba, the UAE’s ambassador to Washington, said the country favored increasing production. Read more

“It’s nothing,” said Bob Yoger, director of energy futures at Mizuho. “They could probably bring 800,000 barrels to market very quickly, even immediately, bringing us seven way to replace Russian supplies.”

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Additional reporting by Yuka Obayashi and Mohi Narayan; Editing by Margarita Choi and Nick McPhee

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