Opec delays the decision to release more oil to the market as prices rise

Saudi Arabia and Russia are trying to negotiate a more comprehensive release of barrels on the oil market, with prices rising sharply for nearly three years, but officials have failed to accept offer and delayed elections until Friday.

Opec and its counterparts outside the cartel met at an early meeting on Thursday to discuss an increase of several hundred thousand barrels a day between August and December.

But they were unable to reach an agreement on manufacturing, suspending the official Opec + group meeting until Friday afternoon. The UAE has become a roadblock, saying it is concerned about its volume.

Those familiar with the negotiations said Opec and its allies are considering a single proposal to increase 400,000 b / d each month, which is less than the initial 500,000 b / d planned in recent weeks and months. They also discuss the length of the contract until the end of 2022.

But the UAE said the original agreement reached in the middle of the epidemic last year undermined the country’s potential for development.

“The UAE has increased its production capacity so it is understandable that it wants more funding according to each agreement,” said Amrita Sen at Energy Aspects, an electronics consulting firm that advises several Opec members.

“It may seem small but we have seen these talks come close to disrupting Opec agreements in the past.”

Traders and experts alike were already skeptical that the volumes being discussed had managed to halt the 50% oil rally since the beginning of the year, and that the increase was exacerbated from the depths of the epidemic.

Failure to accept a deal at higher prices could mean that more and more buttons are kept, possibly raising higher prices while using more efficiently, and strengthening the market.

Saudi Arabia seeks to raise awareness carefully as it tries to address the growing power and uncertainty surrounding the Covid-19 crisis as well as new strains of the virus.

Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online.

Russia, which is striving to retain its share of the stock market, has been calling for months for more aggressive increases.

“Maintaining price stability at high prices, while at the same time increasing its output, could be good for Opec +,” says Louise Dickson at Rystad Energy, a supporter.

Brent, the world’s largest oil producer, boosted its profits on Thursday, with prices rising more than 2.4% to $ 76 per barrel, the closest since 2018. Prices fell to $ 75.61 in the afternoon. West Texas Intermediate, a US brand, reached $ 75 barrels for the first time in about three years.

Investment in the group has declined sharply in recent years, and entrepreneurs and professionals are increasing warning which could cause prices to jump above $ 100 a barrel if conditions appear to be declining in the coming years – a high price Saudi Arabia fears it could jeopardize its demands as it will help get out of oil.

“Saudi Arabia believes that without significant global investment in oil production there is a risk of inflation,” said Christyan Malek, chief oil and gas chief at JPMorgan.

“By allowing oil prices to rise today they are preventing future oil price hikes in the wake of the risks to the company.”

Although Opec delegates predict that oil will be used more by the end of 2021, they are worried about the spread of the virus, said Angamantino Azevedo, Angola’s oil minister, when the cabinet meeting began on Thursday.

Opec expects that “oil prices will rise again in the second half of the year,” Azevedo said. But he acknowledged that the virus was still “harmful” and “thousands of lives lost every day”.

Concerns about the new changes mean that the cabinet is considering implementing procurement measures by April 2022, when the original production reduction agreement, agreed on last year’s pandemic, had to end.

Opec + team agreed in April 2020 to reduce emissions by about 10m b / d, or about 10% in global demand, as closures and travel restrictions have reduced fuel prices. The team has already started to address restrictions, recent restrictions 6m b / d.

“Closing ends in most consumer countries, such as the US and China, demand returns to all quarters,” Ann-Louise Hittle told electrical consultant Wood Mackenzie.