The deal between Saudi Arabia and the United Arab Emirates (UAE) brought frustration to oil traders after the two producers reportedly had reached a compromise on increased production.
Saudi Arabia has finally agreed to allow the UAE to increase its oil production benchmark to 3.65 million barrels a day. An OPEC+ meeting is said to be set soon to formalize the agreement.
The deal has led to a fall in oil prices, with both crude oil benchmarks declining more than 2% in the previous session.
At the opening of the European session, Brent crude futures were still trading gloomily with a 0.8% decline at $ 74.15 a barrel and US WTI was down 0.88% at $ 72.50 a barrel.
Adding to the sadness is when there are reports that Iraq also wants to raise its production benchmark, and this certainly brings bad news to investors who are worried about increased supply amid demand uncertainty.
Meanwhile in the United States, crude oil supplies continued to show a reduction for the eighth consecutive week in the past week, but gasoline and diesel stocks reportedly increased, according to data released by the Energy Information Administration (EIA).
Meanwhile, negotiations on a nuclear deal between Iran and the US will not continue in the near future, causing trade to be slightly relieved with increased production from Iraq that will not happen.
