Oil closed below $ 110 – 19% de-escalation in natural gas

International oil prices finally closed with new losses on Thursday, a day after the biggest drop for the “black gold” for about two years, as traders continued to watch the Russia-Ukraine war with anxiety.

Initially, prices moved higher, based on the comments of the Minister of Energy of the United Arab Emirates, who downgraded the hope of increasing production beyond the program of the Organization of the Petroleum Exporting Countries.

The global benchmark, Brent oil delivery in Maylost $ 2.04 or 1.8%, at $ 109.10 a barrel, having lost 13.2% on Wednesday, in its biggest daily drop since April 21, 2020.

The American WTI crude delivery in April lost $ 2.79, or 2.6 percent, to $ 105.91 a barrel, down 12 percent on Wednesday.

Both closed on Tuesday near a 14-year high.

Emirati Minister Suhail al-Mazrouei specifically stated on Twitter that his country “believes in the value of OPEC + for the global oil market” and that it remains “committed to the OPEC + agreement on the monthly adjustment of production”.

Earlier, the UAE ambassador to the US had stated that the country is in favor of increasing production and urges OPEC to consider higher quantities.

So far, OPEC + remains steady in its plan to increase production by 400,000 barrels per month per day.

“Russia is the real issue for oil” and Saudi Arabia is the only country that can “quickly” bring new crude to the international market, said Tariq Zahir, CEO of Tyche Capital Advisors, speaking to MarketWatch. However, the Saudis “are simply not picking up the phones at the US government for it to ask for” more oil.

Oil – and especially US oil – could easily move to $ 130 if the situation in Eastern Europe worsens, he added.

De-escalation in natural gas

Gas in Europe fell for a third straight day, well below last week, with profit taking and milder weather approaching to threaten supply disruption, at least temporarily.

Gas futures have fallen as much as 23%, to their lowest levels in more than a week. Concerns about Russia’s energy exports remain heightened by sanctions, but pipeline deliveries, key to Europe, which continue to be normal, balance the risks.

The Dutch gas contract, a reference point on the European continent, has fallen more than 50% from its recent highs. It closed with a drop of 19%, to 126.40 euros per megawatt hour, with the corresponding British contract to close with a fall of 21%. Its price electricity in Germanyfell about 19% to 272 euros per megawatt hour.