The Organization of the Petroleum Exporting Countries and its allies (OPEC +) planned to return to the negotiating table on Monday in an attempt to overcome the impasse between Saudi Arabia and the UAE in setting production quotas over the coming months. But the meeting was postponed. Meetings are considered Determinants to contain the rise in oil prices that occur in the markets.
The price of Brent crude, the main reference to the market value of crude produced in the North Sea, has risen by about 50% since the beginning of the year, and after learning about the postponement of Monday’s meeting, it continued to rise, reaching a trading price of $76.79 at about 4:50 pm (mainland time). for Portugal), an increase of 0.8% compared to Friday’s value.
In May 2020, after the pandemic, the Allies decided to cut production. But among the most consuming countries, there is an expectation to see an increase in the supply of crude oil in the markets to prevent the recent rise in prices from jeopardizing the global economic recovery.
Last Friday, OPEC +, led by Saudi Arabia and Russia, voted to increase production by about two million barrels per day between August and December of this year and, at the same time, to extend the remaining production cuts until the end of 2022, instead. In April of the same year, but the United Arab Emirates blocked the agreement, as Reuters wrote. The impasse may delay prospects for producing more oil until the end of the year in order to bring down global prices.
You are The United Arab Emirates They consider the proposal unfair, because they understand that increasing production on the condition of extending the current contract “would extend the reference production volume” from 2018 to December 2022, and because they consider that maintaining these values is detrimental to the UAE, they are requesting that the reference volumes are reviewed in increase to ensure that The level of production is “fair to all parties”.
Energy Minister Suhail Mohammed Al Mazrouei told Bloomberg that Abu Dhabi supports “an unconditional increase in production, which is what the market demands,” but not the idea of extending the current agreement until the end of 2022, which he considers “unnecessary.” right Now”.
On the Saudi side, Energy Minister Prince Abdulaziz bin Salman insisted on Sunday that the increase in the coming months and the extension of the 2018 agreement until the end of 2022 is a guarantee of stability, according to Bloomberg. “It is the whole group on one side and a country on the other, and this is sad for me, but it is a reality,” he stated, referring to the UAE’s position.
In Portugal, due to the increase in prices in fuelThe Portuguese Confederation of Oil Companies (Apetro) published a memo last Friday to explain why, “With prices for oil and refined products significantly lower than their 2008 peak values, pump sales prices are higher than that period”.
Comparing the weekly values from the beginning of July 2008 with the last week of 2021, the association found that “the explanation for the price increase lies in the additional cost of incorporating biofuels and, above all, in the tax burden”.
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