On April 9th, in Riyadh, Saudi Arabia, after the outbreak of the coronavirus disease (COVID-19), Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, at a virtual emergency meeting between OPEC and non-OPEC countries Give a speech via a video link. 2020.
Saudi Press Agency | Reuters
London-meeting between OPEC and its partners, the organization of petroleum producing countries, aimed at reaching an agreement on crude oil production after the organization Unexpectedly failed to reach an agreement last week, Has been cancelled.
The Energy Alliance, commonly referred to as OPEC+, voted on a proposal on Friday that would increase oil production by about 2 million barrels per day at a rate of 400,000 barrels per month between August and the end of the year. It also proposes to extend the remaining production cuts to the end of 2022.
United Arab Emirates Rejected these plansHowever, blocking an agreement for the second day in a row left the oil market in trouble over the weekend.
OPEC+ is scheduled to reconvene crisis negotiations via video conference at 2pm London time on Monday. However, after a two-hour delay, Reuters quoted two sources as saying that the meeting had been postponed.
These reports were later confirmed by the OPEC Communiqué, which stated that “the date of the next meeting will be determined in due course.” Bloomberg also reported that this means OPEC+ will continue to maintain the current level of production quotas.
“For us, this is not a good deal,” said Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure tell CNBC’s Hadley gambled on Sunday. He added that although the UAE is willing to support a short-term increase in oil supply, it hopes to have better conditions by 2022.
Saudi Arabia’s Energy Minister Abdulaziz bin Salman called on the Arabya TV channel owned by Saudi Arabia on Sunday “Compromise and rationalityAccording to Reuters, in order to reach an agreement on Monday.
OPEC+, led by crude oil producers in the Middle East, agreed to implement large-scale crude oil production cuts in 2020 to support oil prices when the coronavirus pandemic coincides with historical fuel demand shocks.
Led by Saudi Arabia, a close ally of the UAE, OPEC+ has begun to hold monthly meetings to guide production policies.
This has led to a rare open confrontation between the UAE and its long-time regional ally, OPEC’s de facto leader, Saudi Arabia.At the time of the dispute, energy market participants anxiously awaited policy direction May affect the crude oil market next year.
In response to these reports, John Kilduff, the founding partner of Again Capital, stated that “OPEC’s unity is disintegrating today.”
“The pandemic united them and now separates them after the pandemic. The UAE insists on raising the baseline. They hope to produce more,” he told CNBC via email.
“This is huge because there won’t be any additional output in the market, and the situation will become very tense,” he added.
After the postponement news came out, the international benchmark Brent Crude oil futures traded at US$76.76 per barrel, an increase of about 0.8% on the day, while West Texas Intermediate The futures price was US$75.77, an increase of approximately 0.63%.
Supported by the launch of the Covid-19 vaccine, the gradual relaxation of lockdown measures, and the large-scale production cut of OPEC+, oil prices rose by more than 45% in the first half of this year.
Analysts previously expected the Energy Union to increase its supply by about 500,000 barrels per day starting next month.