An agreement to increase OPEC+ oil production was put in question because a key member opposed the proposed agreement, which prompted the organization to suspend negotiations for a day.

The OPEC+ Ministerial Committee recommended gradually increasing oil production by the end of the year, thus paving the way for the organization to reach an agreement. Even if oil prices are at a two-year high level, this move will allow the organization to firmly control supply.

One participant, who asked not to be named, said the OPEC+ Joint Ministerial Supervisory Committee, which includes Russia and Saudi Arabia, recommended that the organization increase production by 400,000 b/d per month between August and December.

The committee also recommended that the expiration of the organization's production reduction agreement should be postponed from April to December 2022. The current expiration time was reached during the peak of the first round of the COVID-19 pandemic last year. After expiration, a potentially large amount of supply may return to the market.

Delegates at the meeting revealed that the UAE raised last minute objections to this preliminary agreement reached between Saudi Arabia and Russia. The above representatives said that the two Gulf countries, which are usually close allies, failed to resolve their differences, which led the OPEC+ Advisory Committee to adjourn without giving any suggestions.

Delegates said the committee will meet again on Friday to try to bridge differences.

It is uncertain whether the organization's previous proposal to increase production by 400,000 barrels per day from August to December can still reach consensus. Crude oil futures in the New York market are close to $75 per barrel, close to a two-year high.

Crude oil prices rose about 50% this year, as demand recovered faster after COVID-19 than production after OPEC+ cut production last year. Combined with the rise in other commodities, the sharp rise in oil prices has also raised concerns about inflation.