Greg had the news up on OPEC abandoning talks on an oil output hike:
- OPEC+ meeting has been postponed. OPEC production levels will remain the same. Crude oil prices move higher. No new day has been set The OPEC+ meeting has been postponed with no new day being set. As a result, OPEC will keep the same levels of production with no increased production
And the result:
Sources now cite the US administration:
- urging OPEC and allies to find a compromise solution
Added, White House spokesperson said in a statement:
- "We are not a party to these talks, but Administration officials have been engaged with relevant capitals to urge a compromise solution that will allow proposed production increases to move forward."
Yes, the US admin urgings on energy independence and combatting climate change have been put on hold while they urge MOAR OPEC+ oil pumping ;-)
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Background if you need:
- OPEC+ (OPEC plus Russia and other big oil producers) agreed to output cuts of almost 10 million barrels per day (bpd) last year. This is around 10% of world output. Cuts were pout in place due to the demand slump as the pandemic hit.
- The cuts have been gradually relaxed, and are now about 5.8m bpd.
At the talks begun last week (that have now been halted):
- Saudi Arabia and other OPEC+ members proposed to raise output in stages by about 2 million bpd from August to December (400K bbls a month)
- The UAE rejected extending remaining cuts to the end of 2022 from the current end date of April without adjusting its current baseline production (i.e. the UAE want to increase their share of output)
