[ad_1]
The picture shows the OPEC logo before the informal meeting of the Organization of Petroleum Exporting Countries (OPEC) members in Algiers, Algeria.
Ramzi Boudina | Reuters
Dubai, United Arab Emirates – According to a report by the Organization of Petroleum Exporting Countries, the Organization of Petroleum Exporting Countries reached an agreement on Wednesday after a stalemate over its future oil production levels for nearly two weeks. Wall Street Journal with Reuters.
The temporary but unprecedented stalemate that began in early July led the United Arab Emirates to reject the coordinated oil production plan of a group led by its main figure Saudi Arabia.
Abu Dhabi has asked for an increase in its own crude oil production “benchmark”-the maximum output recognized by OPEC-because this figure determines the scale of production reductions and quotas it must comply with in accordance with the organization’s production agreement. Members cut the same from their baseline Therefore, having a higher baseline will allow the UAE to obtain a larger production quota.
The UAE initially called for an increase in its baseline from 3.2 million barrels per day to 3.8 million barrels per day. According to sources quoted by The Wall Street Journal, the compromise between Saudi Arabia and its smaller neighbors will increase the UAE’s benchmark daily output from April 2022 to 3.65 million barrels. The report has not yet been officially confirmed, and OPEC and the Saudi Ministry of Energy did not respond to CNBC’s request for comment.
The preliminary agreement supported by most OPEC representatives sets out a plan for the organization to jointly increase crude oil production to 400,000 barrels per day by the end of 2022.This will end the remaining limits set in the spring of 2020, as the economic recovery and rising oil demand bring Crude oil prices rose to their highest level since the end of 2018.
Read the full report from The Wall Street Journal Here.
[ad_2]
Source link