- Oil prices are up nearly 5% this morning after slumping the most in almost two years
- Yesterday’s sharp $16/Bbl selloff in Brent was partly attributed to calls from the United Arab Emirates to boost output faster than planned
- That statement from the UAE was tempered later in the day by the nation’s energy minister
- “OPEC+ will have to jump through many hoops to agree to deviate from its current road map,” said Vandana Hari, the founder of Singapore-based Vanda Insights
- Brent crude could surge to $240/Bbl this summer if Western countries continue to sanction Russia oil exports, according to industry consultants Rystad Energy
- Further sanctions on Russian oil would create an over 4 MMBbl/d hole that “cannot simply be replaced by other sources of supply,” Rystad Energy’s head of oil markets, Bjornar Tonhaugen, wrote in a note (Bloomberg)
- The higher prices rise, the higher the “chances of the global economy entering a recession” in the fourth quarter, according to Tonhaugen