Oil edged higher after the biggest drop since November as the fallout from Russia’s invasion of Ukraine continued to rattle financial and commodity markets.
Futures in New York rose above $110 a barrel on Thursday after plunging 12% in the previous session. Oil sank after the United Arab Emirates called on OPEC+ to boost output faster, though the nation’s energy minister appeared to temper that message a few hours later. Ukrainian President Volodymyr Zelenskiy also repeated he’s willing to consider some compromises to help end the war.
Crude has rallied since the start of the invasion two weeks ago, in part due to fears that the loss of Russian energy flows may stretch an already tight market. Still, the heads of OPEC and Chevron Corp. said this week there’s no shortage of crude, while Iraq’s oil minister insisted there’s no need to ramp up production more than planned.
The Ukraine invasion is reverberating through global markets and heaping inflationary pressure on governments and central banks who’re trying to encourage growth after the pandemic. Everything from wheat to metals and natural gas is soaring, with retail gasoline prices in the U.S. jumping to a record this week.
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