Reports indicate that the OPEC+ Meeting was postponed to Friday after the United Arab Emirates (UAE) disagreed with plans for a reduction in their production cuts and an extension until the end of 2022.
In other words, OPEC and non -OPEC ministers will reconvene on Friday to discuss the oil production policy phase. A coalition of several parties referred to as OPEC+ will hold a meeting via video conference today to decide whether to keep the output policy unchanged or to increase production.
Oil prices were only able to record a slight rise on Thursday and then decline on Friday as investors began to weigh risks. In U.S. morning trade, the international Brent crude futures market traded at $ 75.45 a barrel, down 0.5% for the session, while the U.S. West Texas Intermediate futures market was at $ 74.89.0.4% lower.
Neil Atkinson, an independent oil analyst argues that tensions between the UAE and other OPEC + members are not a new thing, they have been going on for some time until now.
He said, ‘the Abu Dhabi National Oil company has invested in greater capacity and taken a more active role in trade. With that it may have started operating like an international oil company. For international oil companies it is different from national oil companies which tend to be influenced by the country’s own policies.
At the same time, analysts from Eurasia Group say they believe an alliance of oil producers has the probability of reaching an agreement. He personally is of the view that the UAE will not risk their side by showing opposition to OPEC+ because it will have a big impact on their side.
OPEC +, which is dominated by Middle Eastern crude oil producers, agreed to implement a massive reduction in crude oil production by 2020 in an effort to drive up oil prices during the Covid-19 pandemic.
Analysts expect the alliance to increase supply by around 500,000 barrels a day starting from next month, slightly higher than the reported proposal to increase by 400,000 barrels.
For example, the meeting will focus on reaching agreement on oil production policy after Thursday’s meeting was adjourned.
