After the news of an agreement, oil prices fell by a dollar a barrel, heading to $75 a barrel, but the UAE Ministry of Energy stated in a statement that no agreement had been reached with “OPEC Plus” on its production plan and that discussions were continuing.
The “OPEC Plus” group – which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers – must still make the final decision on production policy after talks stopped this month due to the dispute between Saudi Arabia and the UAE.
And “OPEC Plus” agreed to reduce production by about 10 million barrels per day last year to meet the collapse in demand due to the Corona pandemic, and the reductions have been gradually reduced since then, and it currently stands at about 5.8 million barrels per day.
The dispute between Riyadh and Abu Dhabi erupted in public after the “OPEC Plus” talks, and both of them expressed concern about the details of a proposed agreement to increase supply in the market by two million barrels per day in order to curb prices that rose to the highest level in two and a half years.
The UAE opposes extending the current agreement from its existing date, extending to April 2022, to continue until December 2022 unless a higher production quota is granted.
Earlier, a source in “OPEC Plus” told Reuters that Riyadh had agreed to Abu Dhabi’s request that the baseline for the Emirates, which is the level at which cuts are calculated under the OPEC Plus agreement on supply restrictions, be at 3.65 million barrels per day as of April / April 2022, up from 3.168 million currently.
The source added that granting the UAE a higher production baseline paves the way for extending the comprehensive agreement to the end of 2022.
Russia insists on increasing production quickly and was among a number of countries that mediated between Riyadh and Abu Dhabi to reach an agreement as soon as possible.
OPEC Plus has not yet reached a final agreement on the production agreement.
It was not immediately clear whether the rest of the countries would adjust their baselines.
The producers had said they would decide on a new date for the next meeting in due course.