OPEC has reached a compromise with the United Arab Emirates, agreeing to increase the amount of oil the cartel member can possibly pump as part of a larger deal with Russian-led producers to increase supplies. global, according to people familiar with the matter.
Crude prices fell immediately upon news of the deal, although they recovered quickly and did not change much when trading began in New York. Brent, the international benchmark, was essentially stable at around $ 76.50 a barrel. West Texas Intermediate was trading around $ 75.10 per barrel.
Demand has suddenly accelerated as many economies, especially in the developed world, start to buzz again, after large-scale vaccination campaigns and the moderation of new cases in many places. The group, called OPEC +, had previously pledged to add about 4 million barrels per day.
Earlier this month, most delegates agreed to a deal that would require OPEC + to increase production by 400,000 barrels per day each month until the end of 2022, which would lift remaining restrictions. But after days of talks, the UAE refused to sign.
The country, one of OPEC’s biggest producers and generally a strong ally of the group’s de facto leader Saudi Arabia, has insisted that its own quota be lifted as part of any deal.
The UAE had demanded that its so-called baseline – or the maximum amount of oil the group would recognize the country would be capable of producing – be raised to 3.8 million barrels per day from 3.2 million barrels per day. barrels per day. In the compromise reached Wednesday with Saudi Arabia, the group agreed to increase this figure to 3.65 million barrels per day from April, according to sources familiar with the matter.
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