Oil prices soared higher on Tuesday, after repeatedly postponed OPEC+ meetings were canceled without reaching an agreement on upcoming oil production.
OPEC+ halted talks on oil production and did not set a new date to resume it, following a dispute with the United Arab Emirates (UAE).
The UAE initially agreed to a production increase of 400,000 barrels a day from August to December, but refused to extend the reduction until 2022.
This has led to talks between member states having to be postponed repeatedly, and culminating, the meetings were canceled after the UAE’s request to increase their basic output volume was rejected.
Decisions on OPEC+production policy, require the unanimous consent of member states.
As a result, the level of reduction in production in August remained at the current level, and this caused oil prices to soar higher to the highest level since October 2018.
U.S. WTI crude futures rose more than 2% at $ 76.70 a barrel, while Brent crude was up $ 77.50 a barrel.
