Oil is falling close to $ 113 a barrel after reports that Saudi Arabia is ready to pump more oil if Russian production falls sharply due to sanctions for the country’s invasion of Ukraine.
West Texas Intermediate futures fell more than 3% to balance a little later.
The Financial Times reported that Saudi Arabia had hinted to its Western allies that it was ready to increase oil supplies.
The news comes ahead of OPEC + ‘s monthly meeting on Thursday, at which the group is expected to validate a modest increase in production in July.
The United States has repeatedly called on the cartel to increase production faster to deal with rising gasoline prices and decades-high inflation, which is being rekindled by the war in Ukraine.
Also, President Biden is expected to visit Saudi Arabia later this month as part of an international trip that will include meetings within NATO and the G7, according to Bloomberg sources.
There have been discussions about an immediate boost to the offer from Saudi Arabia and the United Arab Emirates, which could be announced at the OPEC + meeting on Thursday, although nothing has been finalized.
Production increases scheduled for September may come earlier, in July and August.
WTI for July delivery was down 1.9% at $ 113.13 a barrel, after falling as much as 3.1%.
Brent crude for August delivery fell 1.7% to $ 114.32 a barrel.
Source: Capital
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