The price of oil fell in the early morning Asian trading hours following a report that Saudi Arabia could step up production if Russian output drops due to EU sanctions.
As of 13.20 hrs. local time in Thailand, international benchmark Brent crude futures were last down 1.78% at US$114.22 per barrel. U.S. crude futures dropped 1.92% to $113.04 per barrel.
The Financial Times reported Saudi Arabia is prepared to raise crude production if Russia’s output significantly falls following the sanctions.
According to sources, Saudi Arabia is aware of the risks of a supply shortage and it is “not in their interest to lose control of oil prices.” OPEC’s de facto leader, Saudi Arabia, has not yet witnessed genuine shortages in the oil markets.
The report comes before Thursday’s monthly meeting of the OPEC+ alliance.