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By Malvika Gurung
Investing.com — In a turn of events on Wednesday, the OPEC member country, United Arab Emirates, stated that it supported the idea of injecting more oil into the market, currently undergoing pressures and supply disruptions, led by the Russia-Ukraine crisis.
The UAE ambassador Yousuf Al Otaiba stated that they encourage OPEC to consider increasing the oil production output.
Post this statement, global oil prices plunged over 10% on Wednesday, with the tanking 13.2% to settle at $111.14/barrel from over $130/barrel, its steepest single-day fall since April 2021.
The US also declined 12.5% to $108.70, its biggest decline since Nov 2021.
Retracting oil prices gave a much-needed breather to global markets on Wednesday, with Wall Street snapping a four-day losing run and surging the most since the pandemic in 2020.
Asian stocks followed suit, in conjunction with diplomatic talks resuming between Russia and Ukraine, improving market sentiments and rising on Thursday.
Domestic benchmark indices opened higher too, with only 1/30 stock on opening in red on Thursday, ahead of the UP state election results.
At 9:40 am, indices was trading 1.85% higher and Sensex gained 1,046.44 points or 1.91%. surged 3.14%.
However, oil prices rebounded on Thursday after the UAE Energy Minister stated that they are committed to the agreement by the OPEC+ to supply 4 lakh barrels/day, only hours after the UAE spokesperson announced to encourage OPEC to consider raising the supply from 4 lakh barrels.
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