OPEC+ oil deal hangs in the balance as key member rebels

opec oil member balance rebels
Gulf
  • Date: 02-Jul-2021
  • Source: Energy Voice
  • Sector: Oil & Gas
  • Country: Gulf
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OPEC+ oil deal hangs in the balance as key member rebels

The OPEC+ alliance descended into bitter infighting after a key member blocked a deal at the last minute, forcing the group to postpone its meeting and casting doubt on an agreement that could ease a surge in oil prices.

The standoff between the United Arab Emirates and the rest of the cartel could ultimately mean that OPEC+ won’t increase production at all, according to a delegate. Without a deal it would fall back on existing terms that call for output to remain unchanged until April 2022. That would squeeze an already tight market, risking an inflationary price spike.

The dramatic turn of events leaves the market in limbo — just as inflationary pressures are fixating investors with oil above $75. It also tarnishes the cartel’s carefully reconstructed reputation, raising the spectre of the destructive Saudi-Russia price war of last year.

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