Saudi Arabia and the United Arab Emirates failed to reach a consensus regarding the terms of the latest proposed agreement. OPEC+ members were looking to increase supply by 400,000 barrels per day from August to December 2021 and proposed extending the duration of cuts until the end of next year. The proposal came after last year it agreed to curb output by almost 10 million barrels per day from May 2020 to the end of April 2022 to cope with the pandemic’s effects.
The United Arab Emirates, despite being supportive of the proposal to increase supply, objected to the terms of the extensions, claiming its “sovereign right” to negotiate fairer terms.
Oil prices soared to three-year highs following the discord between Saudi Arabia and the UAE. US crude topped $76 per barrel, while Brent was higher than $77 per barrel.
The talks between OPEC+ members have been postponed indefinitely.
Sources: Bloomberg.com, reuters.com