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US crude rises 4% as market looks at how to fill supply gap

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The price of oil resumed its move higher on Thursday morning after a sharp drop on Wednesday.

The market is examining whether major producers will raise supply in an attempt to help plug the output lost from Russia due to sanctions for its invasion of Ukraine.

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Benchmark US crude rose $4.39 to $113.11 per barrel in electronic trading on the New York Mercantile Exchange.

Brent advanced $5.36 to $116.50 per barrel in London.

The price of US crude fell 12% on Wednesday, easing a run-up caused by fears that the war might disrupt Russian supplies.

HOUSE PASSES RUSSIAN OIL IMPORT BAN AMID UKRAINE WAR

The price peaked at $127.98 on Mar. 8, and is still up 10.05% month-to-date and 42.89% year-to-date.

Brent, the price basis for international oil trading, fell 13.2% in its biggest daily decline in almost two years.

Comments from the United Arab Emirates energy minister and the country’s ambassador to Washington sent conflicting signals.

Oil fell after the United Arab Emirates urged OPEC partners to increase production in the face of Russia energy sanctions and the resulting price squeeze in the market.

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However, Wednesday night, UAE Energy Minister Suhail al-Mazrouei said on Twitter his country is committed to the existing agreement by the Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, to ramp up oil supply by 400,000 barrels per day monthly following sharp cuts in 2020, according to Reuters.

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