Oil prices rose on Monday due to disagreements over production policies within OPEC +, leading to third-day talks to break the deadlock among producers within the group.
By 0935 GMT, Brent had risen 30 cents (0.4%) at $ 76.47 a barrel and traded at a high of about two and a half years. US oil rose 32 cents (0.4%) to $ 75.48 a barrel.
The Organization of Petroleum Exporting Countries, a group known as OPEC +, and its allies will resume negotiations on Monday after failing to reach an agreement last week in a conflict between Saudi Arabia and the United Arab Emirates.
OPEC +, which agreed to record production cuts in 2020 to deal with the price plunge caused by COVID, will produce about 2 million barrels (bpd) per day from August to December 2021 on Friday. Instead of raising and ending the remaining reductions in April 2022, 2022. The UAE has blocked the agreement.
“The current standoffs underpin the oil complex,” said Kevin Solomon, an analyst at StoneX.
“But the longer the deadlock, the more inflation and rising gas station prices will continue to be crucial global concerns, so we will see intervention by many of the world’s largest powers, such as the United States,” he said. ..
ING Economics also said that OPEC +’s failure to trade could bring a temporary turnaround to the oil market, but “it could also mark the beginning of a broader deal closing. There is a risk that members will start increasing production. “
Prince Abdullah Zizbin Salman, Energy Minister of Saudi Arabia, OPEC’s largest oil exporter, called for “compromise and rationality” to secure trade on Sunday.
Standoffs broke out while the pandemic process was uncertain. The epidemic of delta variants of the coronavirus has pushed oil prices down, but positive European economic data provided some support on Monday.
Eurozone companies expanded at the fastest rate in June’s 15 years as coronavirus deregulation revived the services industry, a study conducted Monday showed.
In the United States, energy companies have increased oil and gas rigs for three of the last four weeks.
Baker Hughes Co reported on Friday that the number of oil and gas rigs, an early indicator of future production, increased by 5 to 475 in the week leading up to July 2, the highest since April 2020.
https://auto.hindustantimes.com/auto/news/oil-prices-rise-as-opec-seeks-to-break-impasse-over-output-pact-41625480557516.html Oil prices rise as OPEC + tries to break the deadlock in production agreements