Oil prices fell around 1.5 percent on Thursday, ahead of the OPEC+ meeting later in the day and after a report from the Financial Times that is ready to ramp up oil production should Russian output substantially decline due to western sanctions.
The Financial Times report also cited a diplomatic source as saying discussions were held about an immediate increase in output from Saudi Arabia and the UAE, which could be announced at the OPEC+ meeting later today.
There were also speculations earlier this week that some producers were considering suspending Russia’s participation in a production deal of OPEC+, adding to the bearish sentiment.
Thursday’s decline followed short-lived rallies in oil markets as initial reports on the EU’s partial ban on Russian oil and Shanghai’s reopening supported prices.
Meanwhile, the EU failed to clinch a deal on a sixth sanctions package against Russia on Wednesday after Hungary raised new demands.
WTI crude traded at around $113 a barrel, and Brent oil near $114.