#Oil# prices lose 1.5%

 Oil prices lost about 1.5% in the European market on Monday, to resume its losses that were halted over two days. This decline comes due to the stalemate in talks between the major producers within the OPEC Plus alliance, as the sharp dispute between Saudi Arabia and the UAE remains over the future of production policy, which adds more Uncertainty about the continued implementation of the current production cuts and the extent of the group's commitment to market shares.

Oil prices lose 1.5%

 
US crude fell by 1.6% to the level of $ 73.47, from the opening level at $ 74.67, and recorded the highest level at $ 74.90, and Brent crude fell more than 1.4% to the level of $ 74.46 a barrel, from the opening level at $ 75.52, and recorded the highest level at $75.82.
 
Upon settlement on Friday, US crude gained 2.0%, and Brent crude rose 1.7%, in the second consecutive daily gain, within the recovery processes from the lowest level in three weeks, and supported by the decline in the levels of the US currency against a basket of global currencies.
 
In terms of trading last week, international oil prices lost an average of 0.6%, the first weekly loss in the last seven weeks, specifically since mid-May.
 
This weekly loss is attributed to the collapse of talks within the OPEC Plus alliance, regarding setting production levels for August and extending the cuts until the end of next year.
 
Those talks were launched on Thursday, "July 1," during the monthly meeting of the OPEC Plus alliance, and stopped completely last week after being postponed more than once due to the sharp dispute between Saudi Arabia and the UAE over the future of production policy.
 
The dispute arose when the UAE objected to a plan to increase production by about two million barrels per day from August to December 2021, and to extend the cuts from April 2022 until December 2022.
 
The current reductions of the OPEC Plus alliance are about 6 million barrels per day, scheduled to end in April 2022, and there was consensus to increase production by about 400,000 barrels per day until the end of this year, which means reducing the cuts to 5.6 million barrels per day with its extension to the end of 2022.
 
Public disagreement was rare among the members of the alliance, but it seems that the increasing divergence of national interests will undoubtedly affect the production policy of the OPEC Plus alliance, and may eventually lead to the collapse of the alliance that helped a lot in restoring balance to the market.