Oil prices rose $2 on Monday, after falling $130 a barrel in the first week of March as Ukrainian forces dug in against heavy Russian attacks. Major oil producers have reported that they are struggling to produce the quotas allocated to them under a supply agreement.
Brent crude futures climbed $1.96, or 1.8%, to $109.89 a barrel at 00:39 GMT, adding to a 1.2% rise last Friday. U.S. West Texas Intermediate (WTI) crude futures rose $2.09 or 2% to hit $106.79, extending a 1.7% jump last Friday.
Oil prices rose after Ukrainian Deputy Prime Minister Iryna Vershchuk said Monday morning that there was no chance of the country’s forces moving into the beleaguered eastern port city of Mariupol. With few signs of easing the conflict, attention has returned to the market’s ability to replace sanctions-hit Russian barrels.
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The latest report from the Organization of the Petroleum Exporting Countries and its allies including Russia, collectively known as OPEC+, showed that some producers are still falling short of their agreed supply quotas.
OPEC+ missed its production target of more than 1 million barrels per day (bpd) in February as part of its pact to increase production by 400,000 bpd each month as it reverses deep cuts operated in 2020, according to Reuters.
The two OPEC countries with the ability to instantly increase production, Saudi Arabia and the United Arab Emirates, have so far resisted calls from major consuming nations to ramp up production to help bring down prices. oil price.
The poor supply outlook and high prices prompted the International Energy Agency on Friday to propose ways to cut oil consumption by 2.7 million bpd in four months – including carpooling, limits on lower speeds and cheaper public transport. This would help offset the 3 million bpd of Russian crude and products that the IEA says will be out of the market by April.
–With the contributions of the agency
First post: STI