What’s Next For Oil After The New OPEC+ Deal

opec oil uae agreement ksa
Gulf
  • Date: 07/20/2021
  • Source: Yahoo News
  • Sector: Oil & Gas
  • Country: Gulf

What’s Next For Oil After The New OPEC+ Deal

Editor OilPrice.comJuly 19, 2021, 5:00 PM·10 min readIn this article: The recent OPEC+ meeting ended with an agreement that would gradually increase the cartel’s monthly production until in late 2022 all of the 9.7 mm BOPD that had originally been withheld from the market, was restored. There was already an agreement in place through December of 2021, but the Kingdom of Saudi Arabia’s, (KSA) desire to extend it to the end of next year was a bone of contention with the United Arab Emirates, (UAE). This agreement was not reached easily and required some negotiation and compromise to achieve.It has been widely reported that the crux of the disagreement between KSA and the UAE, was the latter’s desire for a higher output ceiling from which its share of curtailment would be calculated. This, while certainly true, is not the only factor in the new assertiveness demonstrated by the UAE in OPEC affairs.There is a dichotomy of perspective about the peak for oil that has developed between the KSA and the UAE. The Saudis’ five year plan to diversify their revenues away from oil has not been as successful as initially