SULAIMANI (ESTA) — Oil prices rose on Thursday following a sharp drop in the previous session as the market contemplated whether major producers would boost supply to help plug the gap in output from Russia due to sanctions for its invasion of Ukraine.
Brent crude futures rose $3.31 to $114.5 a barrel at 0554 GMT after trading in a more than $5 range.
The benchmark contract slumped 13% in the previous session in its biggest one-day drop in nearly two years.
U.S. West Texas Intermediate (WTI) crude futures were up $1.83 at $110.5 per barrel after trading in a more than $4 range.
The contract had tumbled 12.5 in the previous session in the biggest daily decline since November.
Uncertainty over where and when supply will come from to replace crude from the world’s second largest exporter Russia in a tight market has led to wide ranging forecasts for oil prices between $100 and $200 per barrel
“So to suggest the oil market is confused would be an understatement as we are in an unprecedented situation,” Reuters quoted Stephen Innes, managing partner at SPI Asset Management, as saying.
