Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to significantly boost output.
Oil benchmark Brent Crude futures is up 1.49% at $116.81 per barrel at the time of writing this report.
The Western Texas Intermediate is gaining 1.16% trading at $110.84 per barrel.
On Monday, United Arab Emirates’ energy minister Suhail al-Mazrouei said that the nation is producing near capacity based on its quota of 3.168 million barrels per day under the agreement with OPEC+, countering expectations that it could help boost supply in a tight market.
This comes amid political unrest in Libya and Ecuador. On Monday Libya’s National Oil Corp said it might declare force majeure in the Guld of Sirte in the next three days barring the resumption of production and shipping at oil terminals there.
During the G7 meeting, French President Emmanuel Macron told the US President Joe Biden that Saudi Arabia could increase out by only 150,000 barrels per day, far below its nameplate spare capacity of about 2 million barrels per day, Reuters reported.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.