The American “Bloomberg” agency reported that the Organization of Petroleum Exporting Countries (OPEC) and its allies “OPEC Plus” are considering holding a virtual meeting, Sunday, after the organization made great progress to resolve the Saudi-Emirati dispute.
Delegates from OPEC and its allies said ministers from Saudi Arabia, Kuwait, the United Arab Emirates and Oman met online on Saturday to discuss the dispute. Delegates requested anonymity because they are not authorized to release any information.
Reuters news agency quoted a source in "OPEC Plus", earlier on Wednesday, as saying that Saudi Arabia and the UAE had reached a compromise on an oil supply agreement by giving the UAE a higher percentage of production quotas.
But the UAE Minister of Energy, Suhail Al Mazrouei, said that an agreement had not yet been reached with “OPEC Plus” regarding the extension of the oil supply agreement, after a source from the organization confirmed to Reuters that an agreement had been reached.
Al Mazrouei said, in a statement, that "deliberations and consultations between the concerned parties are ongoing."
The possible meeting comes after signs of decreasing tension between Riyadh and Abu Dhabi against the background of the dispute, which was described as "rare".
Bloomberg says it is unclear how quickly the additional supplies can be delivered to the global oil market if a deal is reached at the meeting.
She pointed out that the volume of August sales is largely confined and most Gulf countries are preparing for an Islamic holiday that will close government offices and companies throughout the next week.
On Tuesday, the International Energy Agency warned that the oil market "will narrow significantly" and potentially damage the economic recovery without additional production from "OPEC Plus".
Earlier this month, a rare public dispute between Saudi Arabia and its ally, the UAE, over oil exports escalated after statements by the two countries' energy ministers related to the Organization of Petroleum Exporting Countries (OPEC) agreement.
And "OPEC Plus" abandoned its plans to increase oil production by 400,000 barrels per day every month from August to December, due to the UAE's rejection of this plan, considering it "unfair."
While Saudi Arabia and Russia support extending the agreement as is until December 2022, the UAE wants to discuss an increase in production levels before agreeing to an extension beyond April.
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