Domestic crude output stalled last week at a level below the 2022 peak – and far lower than the pre-pandemic high – while the Kremlin’s erratic dictator threatened nuclear weapon retaliation amid the war in Ukraine. Russian President Vladimir Putin amplified already elevated uncertainty about his country’s fragile role on the world’s energy stage.

Brent crude prices hovered in a narrow range following Wednesday’s developments. The international benchmark held around $90/bbl in morning trading, essentially even with the prior day’s close but ahead about 15% from the start of 2022.

After climbing earlier in the summer, U.S. production flattened for the past four weeks at 12.1 million b/d, the U.S. Energy Information Administration (EIA) said in its Weekly Petroleum...