The United Arab Emirates is now in talks with the Organization of the Petroleum Exporting Countries and its allies, regarding a possible compromise deal that could solve the recent impasse of the group.
- A delegate said the talks are for UAE’s baseline of 3.65 million barrels a day for its production cuts, lower than its original target of 3.8 million but above the current level of 3.17 million which it disputed for being too low.
- The UAE is also keen on supporting a Saudi Arabia proposal that would extend the agreement of the OPEC+ on production cuts until December 2022.
- The UAE Energy Ministry confirmed the talks but noted that no deal was done yet. Delegates privy to the talks said an agreement would need to be backed by OPEC+ economies.
- The OPEC+ last week entered a deadlock due to UAE contentions regarding production. A deal could drive output higher, but several members have already established their volumes for next month.
Brent crude fell 0.3% to $76.25 a barrel following the news at 12:53 p.m. in London.
WTI is down 0.66%, and Brent down 0.38%.