Oil surges higher as wild market recovers from huge slump

(Bloomberg) – Oil edged higher after the biggest decline since November as the fallout from Russia’s invasion of Ukraine continued to rattle financial and commodity markets.

Futures in New York rose above $110 a barrel on Thursday after plunging 12% in the previous session. Oil sank after the United Arab Emirates called on OPEC+ to ramp up production faster, although the country’s energy minister appeared to tone down that message hours later. Ukrainian President Volodymyr Zelenskiy also repeated that he was ready to consider certain compromises to help end the war.

Crude has rallied since the invasion began two weeks ago, in part on fears that the loss of Russian energy flows could stretch an already tight market. Yet the leaders of OPEC and Chevron Corp. (NYSE:) said this week there was no shortage of crude, while Iraq’s oil minister insisted there was no need to ramp up production more than expected.

Ukraine’s invasion is rippling through global markets and putting inflationary pressure on governments and central banks trying to spur post-pandemic growth. Everything from wheat to metals is soaring, with U.S. retail gasoline prices hitting a record high this week.

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