Brent Extends Gains on Supply Challenges

Brent Crude: futures jumped above $116 per barrel on Tuesday, rising for the third straight session, amid reports that the UAE and Saudi Arabia are producing near capacity, while political unrest in Libya and Ecuador threatened to tighten supply further.

UAE Energy Minister Suhail al-Mazrouei said Monday that the country was producing near maximum capacity based on its quota of 3.168 million barrels per day under the agreement with OPEC+.

This confirmed remarks by French President Emmanuel Macron who told US President Joe Biden that UAE and Saudi Arabia, previously perceived as the only two countries in the OPEC with spare capacity, can barely increase oil production.

Meanwhile, Libya’s National Oil Corp said Monday it might have to declare force majuere in the Gulf of Sirte area unless oil terminals there resume operations, while Ecuador’s Energy Ministry said the country could suspend oil output completely amid anti-government protests.