Oil rose for a third day in a row on Tuesday morning as major producers including Saudi Arabia and the United Arab Emirates appeared unlikely to significantly increase output, while Western governments agreed to explore ways to limit the price of Russian crude.
At 11:53 GMT, crude oil prices Brent They added $1.98, or 1.72%, to $117.02 a barrel, after gaining 1.7% the day before. US WTI crude futures were up $1.65, or 1.5%, at $111.22, after rising 1.8% on Monday.
The G7 group leaders 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.
Russian oil export revenue rose in May even as volumes fell, the International Energy Agency said in its June report.
Western bans 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 Petroleum Exporting Countries (OPEC) with additional capacity to compensate for the loss of Russian supply and the weak production of 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 near-term capacity limits,” said Tobin Gorey, an analyst at Commonwealth Bank commodities.
Analysts also said political unrest in Ecuador and Libya could further reduce supply.