Faced with the cartel’s indecision on the issue of oil production quotas, the United States urges it and its allies to find a compromise, in order to give a clear direction to the market in a context of recovery in demand.
The meeting scheduled for July 5 between the Organization of the Petroleum Exporting Countries and its allies (OPEC +) has been postponed. The meeting, which was scheduled to start at 3 p.m. Vienna time and 1 p.m. GMT, was postponed because parallel discussions between stakeholders on the new quota agreement failed to resolve the dispute between Saudi Arabia, head of file of the group and the United Arab Emirates (UAE).
“The new meeting date will be decided in due course and we will inform you. This date is unlikely to be set until Saudi Arabia and the United Arab Emirates reach an agreement, ”OPEC Secretary General Mohamed Barkindo (pictured) said in a letter to oil ministers of the countries associated with the agreement.
The stalemate in which OPEC + finds itself today arose when the United Arab Emirates rejected a proposal supported by other OPEC + members to achieve a monthly increase of 400,000 bpd in production at from August to December. This would result in a new supply of an additional 2 million barrels per day by the end of the year.
Members have also offered to extend production cuts until the end of 2022. But the UAE wants the cartel to allow it to increase production even further. Anything that other members of the group oppose.
The OPEC + production limit agreement has not expired, however, as a permanent agreement remains in place. It expires in April 2022 and is subject to review next December.
With the dynamism of demand, this feud within OPEC + has not had a negative impact on the prices which continue to be close to the summits. On Monday, a barrel of Brent reached 77 dollars, its highest level in nearly three years.