Crude oil futures settled deeply in red on Wednesday giving back some of the rally this month amid supply disruptions stemming from Russia’s invasion of Ukraine. The move in oil lower came amid indications of possible progress by the US in encouraging more oil production from other sources. A private report stated that Iraq said it could increase output if OPEC+ asks. Secretary of State Antony Blinken also signaled that UAE would support increased production by OPEC+. However, data from US Energy Information Administration showed crude inventories in the US dropped by 1.9 million barrels in the week ended March 4. The data said gasoline stockpiles fell 1.4 million barrels last week, while distillate stockpiles dropped by 5.2 million barrels.
Benchmark crude oil futures for April delivery dropped $15 or 12.1 percent to settle at $108.70 a barrel on the New York Mercantile Exchange. Brent crude for May delivery declined $16.8 or 13 percent to settle at $111.1 a barrel on London's Intercontinental Exchange.