By Gina Lee
Investing.com – Oil was down in Asia on Monday morning, with investors on tenterhooks before a late hour of the day.
it was down 0.07% to $ 76.12 at 12:25 am ET (4:25 am GMT), after falling to its first weekly decline in six during the previous week. it was also down 0.07% to $ 75.11.
The latest meeting comes as the cartel voted to increase production by roughly 2 million barrels per day from August through December 2021, as well as extend the remaining production cuts through the end of 2022, on Friday.
However, the UAE has raised objections to the results of the vote, in a rare public dispute that could lead to a price drop like the one that followed the price war between Saudi Arabia and Russia in April 2020. National interests are also increasingly influencing the landscape. , with oil users wanting to see more supply on the market as their economies recover from COVID-19.
“This latest move raises the bar for the OPEC + alliance, which has shown great unity that has ultimately helped rebalance the market after the collapse in demand,” analysts at ANZ Research said in a note.
“A breakout could result in an all-out battle that would likely lead to a price collapse,” the note adds.
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman Al Saud, called for “compromise and rationality” in a bid for unity ahead of Monday’s meeting.
“You have to balance addressing the current market situation with maintaining the ability to react to future developments … if everyone wants to increase production, then there has to be an extension,” he told local media, where he also highlighted the uncertainty about the course. of COVID-19, as well as the production of Iran and Venezuela in particular.
Meanwhile, in the US, Baker Hughes Co said in its report on Friday that the amount of oil and rigs increased by 5 to 475 in the week through July 2, the most since April 2020. This indicator early future production increased for the third week of the last four.
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