August sales volumes are largely locked in and most Gulf countries are preparing for an Islamic holiday that will close government offices and businesses for most or all of next week. If there is a deal on Sunday, it is unclear how quickly additional supplies can be delivered to the market. Read: High-Stakes Oil Diplomacy Puts Future of OPEC+ Deal at Risk (1)Įarlier this week, the two sides were nearing a compromise that could give the UAE a more generous output limit next year and allow the rest of the group to raise production. “Over the past year it has become increasingly clear that a necessary if not sufficient condition for OPEC+ cohesion is alignment between not only Russia and Saudi Arabia, but also the UAE,” said Bob McNally, president of Rapidan Energy and a former White House official, predicting a deal would be done. The original proposal - backed by Riyadh, Moscow and the rest of the group - would have boosted output in monthly installments of 400,000 barrels a day. The collapse of talks briefly sent crude to a six-year high in New York, although prices have dropped since to trade just below $72 a barrel on Friday. As the ministers of each country used media interviews to make their case, memories were stirred of the 2020 price war, and later that year Abu Dhabi’s veiled threat to leave the alliance. The dramatic breakdown in talks left markets in limbo, and raised the prospect that the current OPEC+ accord underpinning the recovery in the oil price could unravel. Already this week, there have been signs of progress between Saudi Arabia and the UAE toward an outline agreement.Įarlier this month, an unusually public spat between the two long-time allies forced OPEC+ to abandon a proposal to boost oil production. OPEC+ officials have said privately in recent days that the group would only meet if a deal was in reach.
Ministers from Saudi Arabia, Kuwait, the UAE, Bahrain and Oman met online on Saturday to discuss the matter, delegates said, asking not to be named because the information isn’t public.
Vienna time, delegates said, although one cautioned that not every minister had confirmed attendance. The online conference of ministers is scheduled for 12 p.m. OPEC+ has called a meeting on Sunday after the group made significant progress toward resolving a standoff with the United Arab Emirates that had blocked a deal to boost output.
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