OPEC+ set to meet as oil group edges toward end of standoff

opec oil group standoff would
Gulf
  • Date: 07/18/2021
  • Source: Arabian Business
  • Sector: Oil & Gas
  • Country: Gulf

OPEC+ set to meet as oil group edges toward end of standoff

OPEC and its allies will meet on Sunday, the latest sign that a standoff between Saudi Arabia and the United Arab Emirates has been resolved. Oil ministers will meet at noon Vienna time and hold a press conference afterwards, the group confirmed. Officials have said privately in recent days that a full meeting would only be called if a deal was in reach. A truce would open the way to more oil coming onto the market, easing a looming supply squeeze and averting an inflationary price spike. It would also put an end to a diplomatic spat that has unnerved oil traders, as the fight between the two long-time allies risked unraveling the broader OPEC+ accord that’s underpinning the recovery in crude prices. The UAE will set a new baseline of 3.65 million barrels a day for its production cuts The UAE has been arguing that the way its quota is calculated is unfair. To make its point, the country blocked a deal that the rest of the group had agreed to, which would have added 400,000 barrels a day each month. The collapse of talks briefly sent crude to a six-year high in New York. It dropped last week to around $72…