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Ministers of OPEC+ abandoned oil output talks and set no new date to resume them, after clashing last week.
OPEC+ had agreed on record output cuts last year as the pandemic sent prices crashing [File: Luke Sharrett/Bloomberg]
OPEC+ had agreed on record output cuts last year as the pandemic sent prices crashing [File: Luke Sharrett/Bloomberg]
6 Jul 2021
Oil prices extended gains to hit some of their highest levels since 2018 after OPEC+ discussions were called off, heightening expectations that supplies will tighten further just as global fuel demand recovers from a COVID-19-induced slump.
Brent crude climbed 18 cents or 0.2 percent to stand at $77.34 a barrel by 0542 GMT, after gaining 1.3 percent on Monday. An earlier session peak of $77.61 was its highest level since October 29, 2018.
OPEC+’s balancing act between crude optimism and pandemic risk
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Oil climbs to highest since 2018 on demand growth, OPEC+ caution
OPEC+ could add 2 million bpd oil to market by December: Report
US West Texas Intermediate (WTI) crude futures were at $76.57 a barrel, up $1.41 or 1.9 percent from Friday’s close. There were no settlements on Monday, a US holiday to mark Independence Day.
It hit $76.77 a barrel earlier on Tuesday, just shy of an October 2018 peak of $76.90.
Ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, abandoned oil output talks and set no new date to resume them, after clashing last week when the United Arab Emirates (UAE) rejected a proposed eight-month extension to output curbs.
The UAE, the group’s fourth-biggest producer, argued against a deal proposed by Saudi Arabia and Russia to extend quota limits until the end of next year, rather than ending them in April as originally planned.
The UAE agreed with the other 22 OPEC+ members that monthly output cuts should be eased by 400,000 barrels a day from August, but said the extension should be treated separately.
The group normally settles its differences in private and likes to put on a show of unity. But this rift runs so deep that the energy ministers of the UAE and Saudi Arabia aired their grievances in interviews with Bloomberg Television and other media on Sunday.
‘No extra barrels’
Some OPEC+ sources said there would be no oil output increase in August, while others said a new meeting would take place in the coming days and they believed there will be a boost in August.
“Behind the rally were the views that there will be no extra barrels from OPEC+ coming from next month and recovering fuel demand will cause a further tightness in the market,” said Tetsu Emori, CEO of Emori Fund Management Inc.
But he also added: “The market seems to believe in the OPEC+ framework and that there will be some sort of agreement by August to keep the system going.”
Iraqi Oil Minister Ihsan Abdul Jabbar said on Monday that his country is committed to the current agreement with OPEC and its allies and does not want to see oil prices soaring above current levels to achieve stability.
He also said he hopes that in 10 days there could be a date for the next meeting.
www.aljazeera.com
OPEC+ had agreed on record output cuts last year as the pandemic sent prices crashing [File: Luke Sharrett/Bloomberg]
OPEC+ had agreed on record output cuts last year as the pandemic sent prices crashing [File: Luke Sharrett/Bloomberg]
6 Jul 2021
Oil prices extended gains to hit some of their highest levels since 2018 after OPEC+ discussions were called off, heightening expectations that supplies will tighten further just as global fuel demand recovers from a COVID-19-induced slump.
Brent crude climbed 18 cents or 0.2 percent to stand at $77.34 a barrel by 0542 GMT, after gaining 1.3 percent on Monday. An earlier session peak of $77.61 was its highest level since October 29, 2018.
OPEC+’s balancing act between crude optimism and pandemic risk
Oil better? OPEC+ confirms plan to hike crude output through July
Oil climbs to highest since 2018 on demand growth, OPEC+ caution
OPEC+ could add 2 million bpd oil to market by December: Report
US West Texas Intermediate (WTI) crude futures were at $76.57 a barrel, up $1.41 or 1.9 percent from Friday’s close. There were no settlements on Monday, a US holiday to mark Independence Day.
It hit $76.77 a barrel earlier on Tuesday, just shy of an October 2018 peak of $76.90.
Ministers of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, abandoned oil output talks and set no new date to resume them, after clashing last week when the United Arab Emirates (UAE) rejected a proposed eight-month extension to output curbs.
The UAE, the group’s fourth-biggest producer, argued against a deal proposed by Saudi Arabia and Russia to extend quota limits until the end of next year, rather than ending them in April as originally planned.
The UAE agreed with the other 22 OPEC+ members that monthly output cuts should be eased by 400,000 barrels a day from August, but said the extension should be treated separately.
The group normally settles its differences in private and likes to put on a show of unity. But this rift runs so deep that the energy ministers of the UAE and Saudi Arabia aired their grievances in interviews with Bloomberg Television and other media on Sunday.
‘No extra barrels’
Some OPEC+ sources said there would be no oil output increase in August, while others said a new meeting would take place in the coming days and they believed there will be a boost in August.
“Behind the rally were the views that there will be no extra barrels from OPEC+ coming from next month and recovering fuel demand will cause a further tightness in the market,” said Tetsu Emori, CEO of Emori Fund Management Inc.
But he also added: “The market seems to believe in the OPEC+ framework and that there will be some sort of agreement by August to keep the system going.”
Iraqi Oil Minister Ihsan Abdul Jabbar said on Monday that his country is committed to the current agreement with OPEC and its allies and does not want to see oil prices soaring above current levels to achieve stability.
He also said he hopes that in 10 days there could be a date for the next meeting.
Oil at highest levels since 2018 as OPEC+ discussions called off
Ministers of OPEC+ abandoned oil output talks and set no new date to resume them, after clashing last week.
