Oil Rises After The UAE Says it is Committed to The OPEC+ Agreement to Increase Supplies

Oil prices recovered on Thursday after the United Arab Emirates said it was committed to the OPEC+ agreement to increase monthly supplies by 400,000 barrels per day, hours after its ambassador in Washington said his country favored a larger increase.

US West Texas Intermediate crude contracts jumped more than three dollars a barrel shortly after the start of trading and was trading up 1.53 dollars a barrel, or 1.4 percent, at 110.23 dollars a barrel.

The US contract had lost 12.5 percent in the previous session, its biggest daily drop since November.

UAE Energy Minister Suhail Al Mazrouei said on Twitter late on Wednesday that his country was committed to the OPEC + agreement and its current monthly production adjustment mechanism.

“The UAE believes in the value that the OPEC + group provides to the oil markets,” the minister added.

His comments came hours after the UAE ambassador to Washington said that his country favors increasing oil production and will encourage OPEC to consider increasing supply.