The Petroleum closed higher for the third day in a row on Tuesday as major producers such as Saudi Arabia and the United Arab Emirates appeared unlikely to significantly increase output, while Western governments agreed to explore ways to cap the price of Russian crude.
The crude Brent it rose $2.89, or 2.5%, to $117.58 a barrel, after gaining 1.7% the day before. crude oil futures West Texas Intermediate (WTI) in the United States gained $2.19, or 2%, to $111.76, after rising 1.8% on Monday.
Leaders of the G7 group of wealthy nations said they will explore a possible shipping ban on Russian crude that has been sold above a certain price, as they seek to increase pressure on Moscow over its invasion of Ukraine.
The income for Russian oil exports rose in May even as volumes fell, the International Energy Agency said in its June report.
Western sanctions on Russia and its oil and gas production have caused global energy prices to rise sharply in recent months. However, other large producers have yet to implement a significant boost to pumping.
Saudi Arabia and the UAE have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with additional capacity to offset the loss of Russian supply and weak production from other members.
“A string of supply-shortage news bolstered the market. Two major producers, Saudi Arabia and the United Arab Emirates, are said to be at, or very close to, short-term capacity limits,” said Tobin Gorey, an analyst Commonwealth Bank Commodities, in a note.
Analysts also said political unrest in Ecuador and Libya could further reduce supply.
The shortage has caused a rebound in prices this week, offsetting fears of a recession that weighed on prices during the previous two weeks.
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