On Monday, ministers of the 14-member OPEC (Organization of Petroleum Exploring Countries) alongside its Russia-backed allies had called off a critical policy meet about a possible output-hike following a corrosive conflict of interest between the OPEC-kingpin Saudi and United Arab Emirates as the OPEC+ member states had botched to reach an accord over boosting production in a near term, eventually leading to a meteoric rally in crude oil futures’ prices.
In point of fact, media headlines had unveiled last week that UAE and Saudi had been engaged in a tentative tussle over output curbs, however, UAE had strongly opposed a proposal to extend an output curb for further eight months, while sources had told that the United Arab Emirates having had the world’s seventh-largest oil reserve or 5.9 per cent of entire available crude oil around the globe, had agreed to boost production by 2 million bpd in stages by December 2021.
If truth is to be told, oil-rich countries likes of Saudi Arabia could have been the biggest gainers, had there been an extension of output curbs, however, countries with smaller crude oil market share likes of UAE, which had long been vying to vent out a way to decentralize their economy, would not be as benefitted as their oil-rich neighbours in case of a output curb, since countries with smaller crude oil market share had to allot their outputs in a rational way in order to stay in line with their projected growth pathways, said a perspicacious bunch of analysts.
Nevertheless, at least four sources were quoted as saying in a press agency report that there had been no progress in the meet, while OPEC Secretary General Mohammad Barkindo had told in a statement that no date had been agreed for a future meeting, too.
OPEC+ policy meet cancelled after Saudi-UAE clash; crude oil prices soar
Citing statistics, on Monday’s commodity market wind down, US West Texas Intermediate crude oil futures soared 1.57 per cent to settle down at $76.28 per barrel, while UK crude oil futures gained 1.27 per cent to $77.08 a barrel.
On Tuesday’s early-morning Asia-Pacific trading hours, US crude contracts were trading 0.49 per cent higher, while Brent crude futures added 0.52 per cent to $77.28 a barrel. Meanwhile, addressing to a growing requirement of additional crude to cope up with a robust reopening of global economy, one of sources familiar with the talks said, “There is no decision about August and discussions still continue. The market needs that oil. ”