The United Arab Emirates has reached a preliminary deal to resolve the its standoff with OPEC+, giving the Gulf state a higher output quota, said a delegate.
The proposal would need to be approved by all OPEC+ members before it can take effect and a new date for a meeting will be set soon, the delegate said, asking not to be named because the information was private.
Oil fluctuated on the news, with Brent crude down 0.3 per cent at US$76.25 a barrel as of 12:53 p.m. in London.
Last week, the Organization of Petroleum Exporting Countries and its allies were forced to abandon a tentative deal to boost oil production because of last minute objections from the UAE. If the compromise is ratified at a new meeting, it could potentially open the way to higher output, although some members have already locked in most of their supply volumes for August.
The UAE will set a new baseline of 3.65 million barrels a day for its production cuts, the delegate said. That would be an increase from about 3.17 million currently — a level the country has argued is unfairly low.
The emirates will now support a proposal from Saudi Arabia to extend the duration of the OPEC+ cuts agreement to December 2022, the delegate said.