Oil Prices Back Up After A Steep Decline In Previous SessionOil prices rose back up on Thursday after a steep drop in a volatile previous session even as major crude producers pledged to plug the supply gap from the escalating Russia-Ukraine conflict.The benchmark Brent crude for the front-end month expiring on March 31 was up over 2 per cent to nearly $114 a barrel, as the US House passes bill banning Russian oil imports, bolstering the administration's response to Russia's war in Ukraine.While oil prices dropped sharply on Thursday after the United Arab Emirates said it is committed to a significant producers' pact to add 400,000 barrels per day of supply monthly.UAE Energy Minister Suhail al-Mazrouei said on Twitter late on Wednesday, his country is committed to the agreement by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to ramp up oil supply gradually following sharp cuts in 2020."The UAE believes in the value OPEC+ brings to the oil market," Mr al-Mazrouei said.The market, though, is still contemplating whether significant producers would boost supply to plug the output gap from Russia due to sanctions."We think it will be challenging for OPEC+ to boost production in this environment," Commonwealth Bank commodities analyst Vivek Dhar told Reuters.The price of a barrel of crude, already on the way higher in January on supply worries and expectations of a strengthening global economic recovery, has rocketed upward since Russia launched what it calls its incursion a "special operation" to disarm its neighbour on February 24.
Oil is now roughly double its early December low.