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July 2, 2021

OPEC+ Postpone Meetings!

 The OPEC+ meeting was postponed until Friday after the United Arab Emirates (UAE) disagreed on plans for a reduction in their production cuts and an extension until the end of 2022.


This has led to the meeting, which took place on Thursday, having to be postponed to make room for more discussions about it, according to sources from OPEC+.


Saudi Arabia and Russia were initially reported to have reached an agreement to increase output by 0.4 million a day from August to December this year to meet rising global demand.


Meanwhile, Moscow and Riyadh are proposing to extend the cut -off period until the end of 2022 to avoid supply disruptions next year.



However, the UAE, which has an oil production growth target, was reluctant to agree to the proposal, besides asking OPEC+ to change the cut -off baseline, which is the initial output level from which the reduction is calculated.


A higher baseline means a lower actual cut.


News of the delay has caused crude oil trading to continue to soar higher until it reached its latest high in the previous session.


In the Asian session, Brent crude futures traded at $ 75.80 a barrel, after hitting $ 76.70 a barrel on Thursday. While the US WTI strengthened at $ 75.20 a barrel, the highest level since October 2018.