MELBOURNESINGAPORE, June 28 Reuters Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns.

U.S. West Texas Intermediate WTI crude futures rose 1.8, or 1.6, to 111.36 a barrel by 0644 GMT, extending a 1.8 gain in the previous session.

Brent crude futures climbed 1.9, or 1.7, to 116.99, adding to a 1.7 rise in the previous session.

The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries OPEC with spare capacity available to make up for lost Russian supply and weak output from other member nations.

A seam of tight supply news bolstered the market. Two major producers, Saudi Arabia and the UAE, are said to be at, or very close to, nearterm capacity limits, Commonwealth Bank commodities analyst Tobin Gorey said in a note.

UAE Energy Minister Suhail alMazrouei said on Monday UAE was producing near maximum capacity based on its quota of 3.168 million barrels per day bpd under the agreement with OPEC and its allies, together called OPEC.

His comments confirmed remarks by French President Emmanuel Macron who told U.S. President Joe Biden on the sidelines of the Group of Seven nations meeting that the UAE was producing at maximum capacity and that Saudi Arabia could increase output by only 150,000 bpd, well below its nameplate…