Brent crude, the global oil benchmark, hit $125 a barrel on Tuesday, the highest since early March. The price of US WTI oil has almost reached $120 per barrel. Both have since retreated in response to media reports, with Brent crude dropping 2.3% below $114 and WTI dropping 1.9% at $113 by 5 AM ET.
“[The] The OPEC+ meeting later today could be pivotal if Russia is granted an exemption from production quotas, which will allow major producers, Saudi Arabia and the United Arab Emirates, to ramp up exports to bridge the gap,” noted Jeffrey Haley, senior market analyst for Asia Pacific at Oanda.
He added, “None of this will ease the refining crisis that has caused gasoline and diesel prices to rise globally, but it will be rare news for the global economy and the fight against inflation.”
Russia’s invasion of Ukraine prompted Western powers to ban imports of Russian crude and refined products. The European Union agreed earlier this week to ban 90% of Russian oil by the end of this year.
Reuters quoted two sources from OPEC + on Thursday Russian oil production has fallen by about 1 million barrels per day in recent months as a result of Western sanctions.
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