Governments look for solutions as pump prices soar globally

Oil prices dropped on Thursday as volatile trading continues amid geopolitical risks.

The West Texas Intermediate for April delivery lost 2.68 US dollars, or 2.5 percent, to settle at 106.02 dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery decreased 1.81 dollars, or 1.6 percent, to close at 109.33 dollars a barrel on the London ICE Futures Exchange.

The above market reactions followed a marked price correction on the oil market, which saw the US crude standard and Brent slump 12.1 percent and 13.2 percent, respectively, on Wednesday.

Traders continue to weigh supply risks amid the ongoing Russia-Ukraine conflict.

On Wednesday, the ambassador of the United Arab Emirates (UAE) to the United States said that his country favors an oil production increase and will be encouraging OPEC to consider higher output.

However, hours later, the energy minister of the UAE, the third-largest OPEC producer, qualified this statement, stressing that his country feels committed to the OPEC agreement and its existing monthly production adjustments.

These remarks came as the current Ukraine situation and the the far-reaching Western sanctions against Moscow have stoked fears about energy supply disruptions from key exporter Russia, sending oil prices up to multi-year highs.

Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC , decided that it would stick to existing plans for a modest oil output increase of 400,000 barrels per day in April, despite a rally in oil prices.