The Commodities Feed: OPEC+ close to a deal? – MENAFN.COM

The Commodities Feed: OPEC+ close to a deal? – MENAFN.COM

Oil prices have come under pressure, with ICE Brent settling more than 2% lower yesterday, and also trading weaker in early-morning trading today. This follows reports yesterday that the UAE and Saudi Arabia have come to an agreement which will see OPEC+ increase output by 400Mbbls/d per month between August and December, as well as extending the OPEC+ deal through until the end of 2022 - it is currently due to expire in April. When talks initially broke down, this was because the UAE wanted its baseline used for production cuts increased. Reports suggest that they have got their way, with their baseline increased from around 3. 2MMbbls/d to 3. 65MMbbls/d. However, up until now, there has been no official statement from OPEC that a deal has been reached. The UAE energy minister has said that though talks have occurred, there is no agreement yet with OPEC+. Obviously, before we can see an agreement between all members, there would need to be another meeting. The EIA's weekly inventory report yesterday was also not very supportive, despite crude oil inventories falling by 7. 9MMbbls over the last week - the seventh consecutive weekly decline. However, product inventories saw builds, with gasoline