Crude oil tumbles as OPEC members pledge to increase supply

March 10, 2022 02:32 PM AEDT | By Arpit Verma

Crude oil tumbles as OPEC members pledge to increase supply — Image source: © Batareykin | Megapixl.com

Spare capacities of the UAE and Saudi Arabia

The UAE and Saudi Arabia are among the few members of the Organization of the Petroleum Exporting Countries (OPEC) that have some spare capacity for oil production.

Must Watch: As Russia-Ukraine War Intensifies, Commodities Also Soars

The US urged the whole world to enhance oil production if they can. The additional capacity produced by the Kingdom and UAE could compensate for some supply shortfalls created by the US embargo on Russian oil imports.

Russia is one of the leading producers and suppliers of crude oil in the world. Experts across the globe believe that the additional oil supply by the gulf countries would not be enough to bridge the supply-demand gap, created by the Russian oil embargo.

Also Read: Crude oil slides from multi-year highs as Iran talks rev up

Adding to this, the International Energy Agency’s plan to release more oil from stocks to ease surging fuel prices has also weighted oil prices. The agency has already pledged 60 million barrels of oil supply into the market as an initial response to the crisis.

Meanwhile, in the last week, U.S. Strategic Petroleum Reserve tumbled to their lowest level since July 2002, as the Biden administration had already approved the release of oil in November.

Bottom Line

On Wednesday, crude oil prices recorded the biggest daily decline since November 2021 after a few OPEC members pledged to pump more oil into the market to compensate for the current supply disruptions created by the Russian oil embargo.

Here’s how commodities performed in the last week click here

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.