Oil drops as OPEC+ tension grips market
Oil prices dropped on Monday as investors and traders continued to wait on crucial talks by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) following disagreements within the group that could end up with major producers raising volumes to grab market share.
Brent crude’s four days of gains came to a halt as it dropped by 40 cents, or 0.5%, at $75.77 a barrel by 0131 GMT, after slipping 1 cent last week, the first weekly decline in six. US oil was also down by 30 cents, or .04%, at $74.86 a barrel, after rising 1.5% last week, the sixth consecutive week of gains for the contract.
The OPEC+ convened on Friday and moved to increase production by about 2 million barrels a day from August until December 2021 and to extend the remaining output cuts up to the end of 2022. However, the United Arab Emirates (UAE) objected to the proposition, effectively preventing an agreement.
On Sunday, Saudi Arabia’s energy minister called to stand against the UAE’s opposition to the proposed OPEC+ deal, urging for “compromise and rationality” to achieve solidarity when the group meets again on Monday.