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| Version 1 | Version 2 |
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| Oil market holding its breath as OPEC+ struggles to reach production deal | Oil market holding its breath as OPEC+ struggles to reach production deal |
| (about 2 months later) | |
| Oil prices are balancing above $75 a barrel after the Organization of the Petroleum Exporting Countries (OPEC) and partners failed to agree on output policy. If the group fails to boost production, crude prices could surge. | Oil prices are balancing above $75 a barrel after the Organization of the Petroleum Exporting Countries (OPEC) and partners failed to agree on output policy. If the group fails to boost production, crude prices could surge. |
| Crude prices retreated slightly on Monday, with Brent futures down 0.11% to $76.09 a barrel, while US crude futures slipped 0.13% to $75.06 a barrel. | Crude prices retreated slightly on Monday, with Brent futures down 0.11% to $76.09 a barrel, while US crude futures slipped 0.13% to $75.06 a barrel. |
| Oil prices initially shot up last week as reports started to emerge that OPEC and its non-member allies led by Russia were discussing a gradual increase in oil output. | Oil prices initially shot up last week as reports started to emerge that OPEC and its non-member allies led by Russia were discussing a gradual increase in oil output. |
| The energy alliance, however, failed to agree on their output policy over two consecutive meetings, and plan to renew discussions later on Monday. | The energy alliance, however, failed to agree on their output policy over two consecutive meetings, and plan to renew discussions later on Monday. |
| The deal is being blocked by the United Arab Emirates, which “unconditionally” supports an increase in production, but has issues over the basic elements of the deal. | The deal is being blocked by the United Arab Emirates, which “unconditionally” supports an increase in production, but has issues over the basic elements of the deal. |
| “The issue is putting a condition on that increase, which is the extension of the agreement,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC on Sunday. He said that the current OPEC+ proposal “wasn’t a good deal” for the UAE. | “The issue is putting a condition on that increase, which is the extension of the agreement,” UAE Minister of Energy and Infrastructure Suhail Al Mazrouei told CNBC on Sunday. He said that the current OPEC+ proposal “wasn’t a good deal” for the UAE. |
| The UAE is demanding a revision of the so-called baseline – a figure against which production cuts or increases for the OPEC+ countries are calculated – before extending the supply deal, Reuters reports. The bigger the baseline, the more oil a country is allowed to produce. The current baseline for the UAE dates back to 2018 and the country wants it raised if the deal is extended through 2022. | The UAE is demanding a revision of the so-called baseline – a figure against which production cuts or increases for the OPEC+ countries are calculated – before extending the supply deal, Reuters reports. The bigger the baseline, the more oil a country is allowed to produce. The current baseline for the UAE dates back to 2018 and the country wants it raised if the deal is extended through 2022. |
| Meanwhile, Saudi Arabia’s energy minister on Sunday called for “compromise and rationality” to secure the deal when the talks resume. Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel that the extension of the OPEC+ deal is “the basis and not a secondary issue,” and called for all sides “to balance addressing the current market situation with maintaining the ability to react to future developments.” | Meanwhile, Saudi Arabia’s energy minister on Sunday called for “compromise and rationality” to secure the deal when the talks resume. Prince Abdulaziz bin Salman told Saudi-owned Al Arabiya television channel that the extension of the OPEC+ deal is “the basis and not a secondary issue,” and called for all sides “to balance addressing the current market situation with maintaining the ability to react to future developments.” |
| “If everyone wants to raise production then there has to be an extension,” he said, citing uncertainty about the future of the Covid-19 pandemic crisis. | “If everyone wants to raise production then there has to be an extension,” he said, citing uncertainty about the future of the Covid-19 pandemic crisis. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |