A deal to boost OPEC+ 's oil production was called into question after a key member opposed the proposed agreement, prompting the group to suspend negotiations for a day.
The OPEC+ Ministerial Committee recommended a gradual increase in oil production by the end of the year, paving the way for the organization to reach an agreement. Even if oil prices are at a two-year high, the move will give the organisation a firm grip on supply.
A delegate who spoke on condition of anonymity saidThe joint ministerial supervisory committee of OPEC+, including Russia and Saudi Arabia, recommended that the organization increase production by 400000 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 date was reached at the peak of the first round of COVID-19 last year, which could lead to the return of large potential supplies to the market.
Delegates revealed that the United Arab Emirates opposed the preliminary agreement reached between Saudi Arabia and Russia at the last minute. The representatives said the failure of the two Gulf states, usually close allies, to resolve their differences led to the adjournment of the OPEC+ advisory committee without making any recommendations.
Delegates said the committee would meet again on Friday in an attempt to bridge differences.
It is not clear whether the group's previous proposal to increase production by 400000 barrels a month from August to December can still be agreed. Crude oil futures prices in New York are close to $75 a barrel, close to a two-year high.
The price of crude oil has risen by about 50% this year, as the recovery in demand after the COVID-19 epidemic outpaced that of OPEC+ after a sharp cut in production last year. Combined with the rise in other commodities, the surge in oil prices has also raised concerns about inflation.