On Sunday July 4, 2021, energy minister of Saudi Arabia pushed back against opposition along with the United Arab Emirates- fellow Gulf producer- to a projected OPEC+ deal and demanded for rationality and compromise to secure agreement at the time of reconvene of the group on Monday.
It is a rare event of spat among allies, whose national interests have progressively deviated, spreading it over OPEC+ policy setting when customers want more quantities of oil to satisfy the rising demands amid global revival from the COVID-19 pandemic.
According to the sources, OPEC+ put forward a deal to increase the output by some 2 million barrels a day from August 2021 to December 2021 and also to lengthen remaining cuts to the end of 2022 but UAE protests barred agreement.Prince Abdulaziz bin Salman, Saudi’s Energy Minister said that the extension of the deal is the basis and not a minor topic.
Keeping uncertainty about the output from Venezuela and Iran and the course of the pandemic, he said that they need to balance dealing with the present market situation along with preserving the capability to respond to upcoming developments. He further added that if every is willing to increase the production then the extension has to be done.On Sunday July 4, 2021, UAE said it supports an output raise from August but advised rescheduling to another meeting to make a decision on lengthening the supply agreement. It further stated that the baseline production references needs to be reviewed before any kind of an extension.