Oil hits three-year high after Opec+ abandons meeting

  • Date: 05-Jul-2021
  • Source: Financial Times
  • Sector:Oil & Gas
  • Country:Gulf
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Oil hits three-year high after Opec+ abandons meeting

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Oil prices jumped to the highest level in three years after Opec and its allies abandoned a decision over increasing oil production, as Saudi Arabia, Russia and the UAE struggled to reach a compromise. 

Opec+ oil ministers had been due to reconvene on Monday after failing to reach a deal at the end of last week, with the UAE chafing over a supply target it believes is too low and that underestimates its production capacity. 

But with high-level bilateral talks unable to break the impasse and find the required unanimity of views ahead of the formal meeting's planned start, the virtual gathering was cancelled.

The meeting has been "called off" said Mohammed Barkindo, secretary-general of Opec to ministers. "The date of the next meeting will be decided in due course."

One person familiar with Saudi Arabia's policy said the UAE's stance put a deal out of reach and now prices will likely rise as a result.

"We missed a good opportunity to help the market relieve a temporary shortage," he said. "They [UAE] need to now take the heat of higher oil prices."

Brent crude oil, the international benchmark, climbed on the news to $77.09 a barrel,