Oil price climbs after dipping post UAE-Yemen truce

Oil price climbs after dipping post UAE-Yemen truce

/ Financial News / Monday, 04 April 2022 10:16

Oil prices gained about $1 as worries of tight supplies continued after Germany warned of more sanctions on Russia and talks to revive the Iran nuclear stalled.

Brent crude was up 94 cents or 0.9% at 105.33 per barrel while West Texas Intermediate crude was up 92 cents or 0.9% at 100.19.

Oil prices had dipped following a truce between the United Arab Emirates and the Iran-aligned Houthi group to halt military operations on the Saudi-Yemeni border, easing potential supply concerns.

The ministry of foreign affairs and international cooperation (MoFAIC) said in a statement that the UAE welcomes the announcement by the Yemeni government and the Coalition to Restore Legitimacy in Yemen, to accept the truce, stressing its support for all efforts made by the Special Envoy to enhance prospects for peace and stability in Yemen and the region.

Oil prices settled down around 13% last week following US president Joe Biden’s announcement of releasing 1 million barrels per day (bpd) of crude oil for six months from May, which at 180 million barrels is the largest release ever from the US Strategic Petroleum Reserve (SPR).

In global supplies scenario, sanctions imposed on Russia over the Ukraine invasion have disrupted oil supplies and drove oil prices to nearly $140 a barrel, the highest in about 14 years.

Meanwhile, the Russian state-owned energy giant Gazprom said on it was continuing to supply natural gas to Europe via Ukraine in line with requests from European consumers. Russia has asked oil exporters to make natural gas payments in roubles to counter the heavy economic sanctions imposed on the country by US and its allies.

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