Global oil prices on Wednesday recorded their biggest fall since the early days of the pandemic nearly two years ago, when the United Arab Emirates said OPEC member markets would support an increase in production in the face of disruption. Russia after the invasion of Ukraine.
Brent crude during the session fell over 17% to $16.84, or 13.2%, at $111.14 a barrel, its biggest one-day fall since April 21, 2020.
US crude fell $15.44, or 12.5%, to $108.70 a barrel, its worst day since November.
“We are in favor of increasing production and would encourage OPEC to consider higher levels of production,” Ambassador Yusuf Al Otaiba said on Twitter from the UAE Embassy in Washington.
The drop in prices was also exacerbated by traders who interpreted some comments by the Iraqi minister as the country’s desire to increase production if necessary. However, state oil trader Somo later clarified that he considers OPEC+’s monthly increase to be sufficient to resolve any oil shortages.
Just a week ago, the group known as OPEC+ and its allies blamed high prices on geopolitics rather than a lack of supply, and decided not to increase output any faster than the current increase. OPEC+, which also includes Russia, aims to increase production by 400,000 barrels per day every month and has resisted demands from the United States and other consuming countries to pump more.
Russia is the world’s largest exporter of oil and fuel, transporting about 7 million bpd, or 7% of the global supply.