Oil Eases With U.S. Urging Producers to Ramp Up Supplies

West Texas Intermediate declined 1.3%, falling for a second session. The global economy is facing an energy crisis, Amos Hochstein, the U.S. State Department’s senior adviser for energy security, said Thursday on a panel at a conference. Energy producers who can boost output should do so, he added.

“We found ourselves in an energy crisis,” Hochstein said. “Producers should ensure that global oil markets and gas markets are balanced.”

Crude has pulled back in recent days as a recent rally above $85 a barrel ran out of steam. Iran and the European Union agreed Wednesday to restart negotiations on reviving the 2015 nuclear accord, with a precise date for talks to be announced in the next week. At present, Iranian crude exports are subject to U.S. sanctions and a deal could eventually clear the way for their revival.

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Prices have been lifted by rising demand as pandemic curbs ease and amid a broader gas-centered energy crunch. At the same time, the Organization of Petroleum Exporting Countries and its allies have been restoring supply at only a modest pace.

Crude’s drop came amid signs policy makers are addressing the energy crisis. In Asia, China has taken steps to try to tackle a shortage of key raw materials including coal, while in Europe, Russian President Vladimir Putin ordered Gazprom PJSC to start refilling its European gas-storage sites.