Oil prices plunge as UAE supports supply boost

Image source, Reuters

The United Arab Emirates said it supported increasing production.

At one point, the international benchmark for oil fell more than 17% after the statement by the U.A.

The price of oil has fallen due to supply disruptions caused by Russia.

Families around the world are having a hard time with the rising prices.

The price pressures for households have been pledged to be alleviated by President Joe Biden and other leaders. The US has been in talks with oil producers.

Ambassador Yousuf Al Otaiba said in a statement that they would encourage Opec to consider higher production levels.

The price of energy has gone up for more than a year due to a rapid rebound in demand for oil.

Russia's invasion of Ukraine has added to the price pressures on oil, as sanctions make it hard for the country to find buyers for its oil.

The US and Canada have banned Russian oil imports, while the UK said it would phase them out by the end of the year.

After hitting $139 at one point this week, oil prices fell back. The price of oil settled at $112 a barrel.

The International Energy Agency agreed to release 60 million barrels of oil from strategic national reserves in order to respond to the recent run-up in prices.

On Wednesday, the agency said that oil reserves may be tapped further.

If there is a need, the EIA can bring more oil to the markets as part of the response.

One week after Opec said it would stick to an earlier plan to gradually increase output, the United Arab Emirates made a statement.

The US markets surged after earlier gains in Europe. The S&P 500 jumped 2.5% and the Nasdaq ended 3.5% higher.