OPEC+ Seeks Way Out of Standoff That’s Blocking Supply Hike

opec standoff supply hike blocking
Gulf
  • Date: 02-Jul-2021
  • Source: Yahoo News
  • Sector: Oil & Gas
  • Country: Gulf
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OPEC+ Seeks Way Out of Standoff That’s Blocking Supply Hike

(Bloomberg) -- OPEC+ entered a phase of tense internal diplomacy as it sought to resolve a dispute that’s blocking measures to ease rising oil prices.

If Friday’s efforts fail, the world may not get the extra crude supplies it was expecting. That would squeeze an already tight market, risking a further inflationary price spike.

“If OPEC+ fails to reach a compromise, the automatic fall-back will be to roll over current quotas into August and beyond,” said Matthew Holland, a geopolitical analyst at consultant Energy Aspects Ltd. “That would lead to sharply higher prices, something most OPEC+ members want to avoid.”

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