© Bloomberg. An oil pumping jack, also known as a (Bloomberg) — An agreement to boost OPEC+ oil production was thrown into doubt as a key member objected to the proposed deal, prompting the cartel to pause its talks for a day.
The United Arab Emirates raised a last-minute objection to the preliminary deal Saudi Arabia forged with Russia on Thursday, delegates said. The two Gulf states, typically close allies, were unable to resolve their differences and adjourned the meeting of the OPEC+ advisory panel without any recommendations, the delegates said.
The panel will meet again on Friday to try and bridge the divide, delegates said.
The unexpected turn of events leaves consumers in limbo, unsure of whether the 400,000 barrel a day monthly production increases proposed by the cartel from August to December will be agreed. Crude futures traded near $75 a barrel in New York, close to a two-year high.
Oil has risen around 50% this year, with the recovery in demand from the pandemic outpacing the revival of OPEC+ supplies after last year’s deep cuts. Crude’s surge, combined with a rally in other commodities, has central banks fretting about inflation again.
The Organization of Petroleum Exporting Countries and its allies are already in the process of reviving crude supplies halted last year in the initial stages of the pandemic. The 23-nation coalition decided to add about 2 million barrels a day to the market from May to July, and the question before ministers on Thursday was whether to keep going in the coming months.
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