After several days of tense negotiations, the Organization of the Petroleum Exporting Countries (OPEC) and its partners have not reached an agreement on production of barrels for the next few months, which leaves a somewhat tighter offer than expected.
The energy alliance has already voted on the proposal this Friday to increase oil production by 400,000 barrels a day until the end of the year, but United Arab Emirates refused, thus blocking the pact for the second day in a row and leaving the oil market in limbo.
The meeting was scheduled to resume this Monday, but after a two-hour delay, finally 'sine die' has been postponed, as stated by Reuters.
In Bloomberg they confirm that this means that OPEC + will maintain the same production quotas than the current ones, leaving a scarce supply and thus causing a rise in prices. After the publication of the news, the price of oil rises above 1%, with a barrel of Brent over $ 77, Meanwhile he West Texas is around 76.
"For us, it was not a good deal"UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC on Sunday. Adding that while they were willing to support increased oil supplies in the short term, they want better conditions until 2022.
OPEC +, dominated by Middle Eastern crude producers, agreed implement crude production cuts in 2020 in an effort to sustain its price when the coronavirus pandemic coincided with a historic drop in demand for fuel.
The result of all this process has been the public confrontation between the United Arab Emirates and Saudi Arabia, your lifelong regional ally. The dispute comes at a time when energy market participants await the policy that will shape the oil markets for next year.