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Sources confirmed to Al-Arabiya that the OPEC Plus meeting that was expected today, Monday, has been canceled, noting that approval of an alternative meeting will take place at a later date.
What was before the meeting was an agreement that includes a gradual increase in production of around two million barrels per day from August to next December, in addition to extending the production reduction agreement until the end of next year instead of the previously agreed date for the agreement to expire in April 2022.
In turn, the OPEC secretary general confirmed in a message seen by Reuters later that the OPEC + meeting was canceled, and that a new date would be set.
In a previous interview with Al-Arabiya, oil expert Fahd bin Jumaa expected oil prices to fall sharply in the event that no deal was reached after the OPEC + meeting.
The price of Brent crude hit its highest level since October 2018, topping $ 77 a barrel, after the OPEC + meeting was canceled.
US crude hit its highest level since November 2014 at $ 76.6.
Earlier, oil prices gave up their gains, heading lower, after a report that the OPEC + meeting did not start as planned.
Brent contracts fell 0.15% to $ 75.05 a barrel, while U.S. crude fell 0.22% to $ 76 ahead of the scheduled time for the canceled meeting.
And the price of Brent crude has stabilized at nearly $ 76 a barrel before another round of breakthrough “OPEC +” talks to break the deadlock on increasing production, amid objections from the Emirates.
On Monday morning, London futures fell 0.6%, after rising 3.6% last week. Talks are expected to resume later today after ending Friday without a deal to increase production amid demands from the UAE for better terms.
Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with Bloomberg TV on Sunday night: “The whole group is against one country, and it’s sad for me, but it’s reality.
The Saudi Energy Minister also stressed in an exclusive interview with “Al Arabiya” on Sunday that “a little concession and rationality can make tomorrow’s meeting a success.”
Most OPEC + members backed a proposal to increase production by 400,000 barrels per day each month from August and extend the broader agreement on oil production until the end of 2022 However, the UAE is seeking to change the baseline used to calculate its quota, a move that could allow it to increase daily production by an additional 700,000 barrels. He also refuses to support the extension of the agreement.
Brent crude jumped more than 8% last month, ending a strong recovery in the first half of the year, supported by a steady recovery in demand in major economies including the United States, Europe and China. This progress was also supported by the imposition of an “OPEC +” control on supplies.
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