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It comes after Russia vowed to fulfil its contractual supply obligations after a volatile spell which had seen prices rise rapidly following Moscow's invasion of Ukraine . John Kilduff, partner at Again Capital in New York said that the industry was beginning to feel that claims of a lack of supply were exaggerated and investors were now less nervous.
He said: "I think some of the ‘war angst’ is coming out of the market.
"We rejected $130 twice this week.
"People are beginning to ask if there really is too much of a supply problem.
"There’s still plenty of Russian supply."
UK motorists will enjoy a respite as oil prices drop (Image: Getty Images )
Vladimir Putin said Russia will meet its contractual obligations (Image: Getty Images )
On Wednesday, Brent futures fell $1.81, or 1.6 percent, to settle at $109.33 a barrel while US West Texas Intermediate (WTI) crude fell $2.68, or 2.5 percent, to settle at $106.02 a barrel.
In a sign of the volatility of the market, global benchmark Brent Crude recorded it's biggest decline since the first wave of the coronavirus pandemic in April 2020.
This was in sharp contrast to Monday when a 14 year high of $139 was reached.
On Thursday, Brent settled at $109.09 with WTI at $105.79 in a sign of stabilisation.
Suhail al-Mazrouei ruled out a suggestion that output could be increased (Image: Getty Images )
Russian President Vladimir Putin told a meeting that his country will continue to meet its contractual obligations in relation to oil supplies.
However, Russian oil is being shunned due to its invasion of Ukraine and investors are concerned about where alternative supplies will come from.
UAE Energy Minister Suhail al-Mazrouei backtracked on an earlier suggestion by the country's ambassador to Washington that higher outputs could be considered.
The earlier suggestion had partially caused the sudden drop in prices on Wednesday.
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The US is easing sanctions on Venezuela (Image: Getty Images )
A nuclear deal with Iran may increase supply (Image: Getty Images )
The United States is easing sanctions on Venezuela and attempting to seal a nuclear deal with Iran which could ease supply issues.
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