MOSCOW / DUBAI / LONDON (Reuters) – OPEC + ministers will meet on Sunday in another attempt to agree a quick boost to oil supplies to tackle rising oil prices as the world economy recovers from the oil pandemic. coronavirus.
The group, which includes OPEC countries and allies like Russia, had failed earlier this month to resolve the disagreement over a new production policy between Saudi Arabia and the United Arab Emirates (UAE).
Last year, OPEC + agreed to record production cuts of nearly 10 million barrels per day (bpd) to cope with a pandemic-induced drop in demand, restrictions that have been gradually relaxed since then to leave the cuts at about 5.8 million bpd.
The group had planned to ease the reduction by another 2 million bpd from August as oil prices have risen to two-and-a-half-year highs. [O/R].
While both Riyadh and the UAE supported an immediate increase in production, the UAE opposed the Saudi idea of extending the general supply management pact until December 2022 from the current plan to finalize it in April 2022.
The UAE argued that it wants a higher production quota if the pact is extended.
A higher production quota for the UAE and potentially other members like Iraq and Kuwait will be on the agenda on Sunday, according to three OPEC + sources.
Producers must decide when those higher production quotas, known as baselines, will be set. Sources have told Reuters that the UAE could see its baseline increased to 3.65 million bpd from April 2022 from the current 3.168 million.
It is also unclear from which month OPEC + would release more oil to the market: August could be difficult as Saudi Arabia had already set official sales prices for its oil and the release of additional barrels could upset existing customers.
Sunday’s meeting will take place virtually and begin at 1000 GMT, OPEC said.
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