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Surging oil prices plunge with UAE's supply boost

Mohamed Rehan
10 March 2022, MVT 15:35
(FILES) In this file photo taken on March 12, 2019 a pump jack operates at an oil extraction site in Cotulla, Texas. - US crude crashed to below $15 a barrel on April 20, 2020, its lowest level for over two decades, as concerns about a virus-triggered demand shock and lack of storage eclipsed an output cut deal. (Photo by Loren ELLIOTT / AFP)
Mohamed Rehan
10 March 2022, MVT 15:35

The global oil prices that indicated strong upward momentum plunged after the United Arab Emirates (UAE) confirmed increasing production.

Brent crude, the international benchmark on oil movement, fell by 17 percent at one point following the statement by UAE.

This marks the first instance of a dip in the strongly upward trek of the oil price which had been skyrocketing since fears of supply disruptions ignited right after Russia's invasion of Ukraine.

Meanwhile, US president Joe Biden and other world leaders have pledged to ease price pressures for households.

"We favor production increases and will be encouraging OPEC to consider higher production levels," Ambassador Yousef Al Otaiba said in a statement tweeted by the UAE Embassy in Washington.

It was reported that oil prices jumped more than 30 percent since 24th February 2022, hitting up to USD139 per barrel at one point before slipping down. The prices have currently settled down about 12 percent in US trade with Brent crude at USD112 per barrel.

However, Brent crude moved higher in the Asian trade circuit with USD115 per barrel as of Thursday, 10th March 2022.

Moreover, the International Energy (IEA) has recently confirmed on releasing 60 million barrels of oil from strategic national reserves, but may not be enough to put brakes on the recent run-up in prices.

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