OPEC meet decision on how much crude oil is to supplied from August remains delayed as talks halted twice due to a face-off between UAE and Saudi Arabia.
What UAE Wants
"It is unreasonable to accept further injustice and sacrifice -- we have been patient." An unusually frank quote coming in from UAE Energy Minister Suhail Mohamed Al-Mazrouei clearly stating that UAE wants more oil supply to come into the market. This demand to restore oil production as demand increases comes as UAE is leaving about one-third of its production capacity idle, a higher portion than other members of the Organization of Petroleum Exporting Countries and its allies. UAE is opposing extending cuts all the way into the end of next year.
The Saudi Stand
Riyadh along with 20 other nations want to increase oil supply by 400,000 barrels per day but extend the agreement to restrict supply till the end of 2022. “We have to extend,” Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with Bloomberg Television on Sunday night. “The extension puts lots people in their comfort zone. Signalling the rare diplomatic row the Saudi Prince said “It’s the whole group versus one country, which is sad to me but this is the reality."
Crude Realities
While OPEC+ has raised output in recent months, it’s still withholding roughly 5 million barrels a day from the market. With prices up over 50% this year the market is hoping for some relief from the oil producing giants.