Oil prices fell globally following the UAE announced that it supports the increase in production, as Brent crude fell by up to 17 percent.
The drop comes following a significant rise in oil prices due to supply disruptions caused by tensions following the Russian invasion of Ukraine.
High oil prices have put financial pressure on families around the world.
US President Joe Biden and other leaders pledged to work to ease the pressures of higher prices. US officials have held talks with oil producers aimed at boosting supplies.
“We prefer to increase production and will encourage OPEC to consider higher production levels,” Emirati Ambassador Yousef Al-Otaiba said in a statement posted on Twitter by the UAE embassy in Washington.
Energy prices have been rising for more than a year due to a rapid increase in demand for oil following a decline during the outbreak of the Corona epidemic.
The Russian invasion of Ukraine added new pressure on prices, as sanctions make it difficult for Russia, which produces regarding 7 percent of global supplies, to find buyers for its oil.
The United States and Canada imposed a ban on Russian oil imports, while Britain said it would gradually ban imports from Russia by the end of the year.
Oil prices have jumped more than 30 percent since February 24 to reach $139 at some point this week, before falling back, and settling down by regarding 12 percent, to record the price of a barrel of $112.
The International Energy Agency also recently agreed to use 60 million barrels of oil from strategic national reserves, but this step is not enough to counter the recent price hike.
On Wednesday, the agency confirmed that the oil reserves may be further tapped.
“If there is a need, and if our governments decide to do so, we can bring more oil to the market, as part of the response to the situation,” said Fatih Birol, head of the International Energy Agency.
The UAE statement comes just one week following OPEC rejected calls to raise production levels, declaring that it would adhere to a previous plan to gradually increase production.
On the impact of the UAE’s statements, US stock markets rose following gains in European markets.
