Oil trims gains, Brent slips below $116

Oil drilling rigs

Oil prices trimmed gains on Thursday, after Brent crude touched $119.84, as supply concerns persisted amid Russia-Ukraine tensions.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to maintain an increase in output by 400,000 barrels per day in March, stressing that the oil market was in a well-balanced state.

Although the US and its allies have stopped short of targeting Russia's oil and gas exports as the Joe Biden administration weighs the impacts on global oil markets and US energy prices, the crude prices appear to have ignored this, with WTI crude rising to the highest level since 2011.

Meanwhile, Rystad Energy warned that global oil demand could fall by as much as 1 million barrels per day due to the Russia’s invasion of Ukraine.

In terms of trading, Brent crude was up 2.38% at $115.62 per barrel, at 2.20 pm Makkah time.

West Texas Intermediate (WTI) crude rose 2.84% to $113.74 a barrel.