Oil prices rise as market weighs Opec filling Russia supply gap

Oil prices rose on Thursday following a sharp drop in the previous session as the market contemplated whether major producers would boost supply to help plug the gap in output from Russia due to sanctions for its invasion of Ukraine.

Brent crude futures were up $3.10, or 2.8 per cent, at $114.24 a barrel at 4.19 GMT after trading in a more than $5 range. The benchmark contract slumped 13 per cent in the previous session in its biggest one-day drop in nearly two years.

US West Texas Intermediate (WTI) crude futures were up $1.58, or 1.5 per cent, at $110.28 a barrel, after trading in a more than $4 range.

The contract had tumbled 12.5 per cent in the previous session in the biggest daily decline since November.

Uncertainty over where and when supply will come from to replace crude from the world's second largest exporter Russia in a tight market has led to wide ranging forecasts for oil prices between $100 and $200 a barrel.

"So to suggest the oil market is confused would be an understatement as we are in an unprecedented situation," said Stephen Innes, managing partner at SPI Asset Management.

UAE Energy Minister Suhail Al Mazrouei said on Twitter late on Wednesday his country is committed to the existing agreement by the Organisation of the Petroleum Exporting Countries and allies including Russia, together called Opec+, to ramp up oil supply by 400,000 barrels per day monthly following sharp cuts in 2020.

"The UAE believes in the value Opec+ brings to the oil market," Al Mazrouei said.