BENGALURU, March 10 (Reuters) – Oil prices ended lower in choppy trade on Thursday, a day after the biggest one-day drop in two years as Russia pledged to honor its contractual obligations and some traders said worries about supply disruptions were overblown.
The oil market has experienced its biggest volatility in two years since Russia invaded Ukraine on February 24. Global benchmark Brent suffered its biggest one-day drop since April 2020 on Wednesday. Two days ago, oil prices hit a 14-year high above $139 a barrel.
Brent crude futures fell $1.81 to settle at $109.33 a barrel, down 1.6%, after rising as much as 6.5% earlier in the session. U.S. crude futures fell $2.68, or 2.5%, to settle at $106.02 a barrel, giving back more than a 5.7% gain in the session.
“I think some ‘war anxiety’ is receding from the market,” said John Kilduff, partner at Again Capital. “We missed $130 twice this week and people are starting to ask if the supply problem is really that bad, and the Russian supply is still there. adequate.”
Russian President Vladimir Putin said at a meeting that Russia will continue to honor its contractual obligations in energy supply. Russia is a major energy producer, from which a third of Europe’s natural gas and 7% of global oil supplies come from.
Still, with buyers shunning oil from Russia, the world’s second-biggest crude exporter, due to the invasion of Ukraine, many are unsure where the alternative supply will come from. Statements by Emirati officials gave conflicting signals, adding to volatility.
Brent fell 13% on Wednesday after the UAE ambassador to the United States said he would encourage OPEC to consider raising output levels.
UAE Energy Minister Mazroui tweeted late on Wednesday that the UAE was committed to the agreement between OPEC and its allies, the OPEC+ alliance, and its existing monthly output adjustment mechanism. (over)
Compiled by Gao Sijia; edited by Li Jun
