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Oil prices close higher on warning of production limit

Oil prices closed higher for the third day in a row on Tuesday, as major producers Saudi Arabia and the United Arab Emirates are unlikely to be able to significantly increase production, while Western governments agreed to explore ways to limit oil production. Russian oil price.

Brent crude rose $2.89, or 2.5%, to close at $117.98 a barrel. US crude (WTI) closed up $2.19, or 2%, to $111.76 a barrel.

Both contracts extended gains from the previous session by nearly 2% after the G7 economic powers pledged to increase existing Western pressure on Russia from sanctions for its invasion of Ukraine.

G7 leaders agreed to explore imposing a ban on transporting Russian oil that sold above a certain price, with the aim of depleting Moscow’s war chest.

Russian oil export revenue increased in May even as volumes fell, the International Energy Agency said in its June report.

Western bans on Russia and its oil and gas production have led to a sharp rise in global energy prices, and other major producers have yet to implement a significant increase in supplies.

Saudi Arabia and the United Arab Emirates are seen as the only two members of the Organization of Petroleum Exporting Countries with idle capacity to make up for lost Russian supplies and weak production from other member countries.

(Additional reporting by Ron Bousso and Ahmad Ghaddar in London, Sonali Paul in Melbourne and Muyu Xu in Singapore)

Source: CNN Brasil

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