Supply and demand equilibrium stabilizes oil prices after a steep drop

Oil prices stabilized in Tuesday's early Asian trade as OPEC+ and a weakening dollar eased an earlier selloff.

By 00:33 GMT, Brent crude prices rose 26 cents, or 0.3%, to $84.32 per barrel, while WTI futures rose 19 cents to $76.90 per barrel. On Monday, both benchmarks decreased $2 per barrel due to a stronger currency.

Ihsan Abdul Jabbar, the oil minister of Iraq, stated that OPEC+, which includes Russia, is monitoring oil prices to maintain market equilibrium.

"We do not want oil prices to skyrocket or plummet," he remarked on state television.

On account of the strength of the dollar, oil prices settled at nine-month lows after Abdul Jabbar's remarks.

This year, OPEC+ increased production following record cuts in 2020 due to the COVID-19 outbreak. In recent months, the corporation has not met its output targets.

A weakening dollar, which moves in the opposite direction of oil, aided prices. While the dollar fell following the settlement, it reached its highest level since May 2002 on Monday morning.

Uncertainty regarding supply interruptions resulting from the Russia-Ukraine conflict and tightened monetary policy prevented prices from increasing.