Last week, OPEC+ canceled its meeting plan after failing to reach an agreement, leaving the oil market facing tight supply and rising prices. Currently, the August oil production negotiation window is about to close, but there is no sign of an agreement yet.
Some media quoted OPEC+ representatives as reporting that although other members hope to reach a compromise, there is no sign that Saudi Arabia and the UAE have made progress in resolving the dispute.
At the same time, OPEC+ representatives revealed that both Saudi Arabia and the United Arab Emirates have begun to lock in customer supplies for next month, which means that even if there is a sudden breakthrough in negotiations, the two countries are almost There is no room to make adjustments.
With oil sales locked in for August and most Gulf states preparing for an Islamic holiday, government offices and businesses will be closed for most of next week, so even if Russia, the U.S. Oil supplies may or may not increase quickly if other countries manage to broker a deal.
Moreover, the timing of this holiday also means that the next meeting may not be held until the end of July or even early August.
The continued deadlock in production increase negotiations has put the oil market in trouble. Oil prices have now risen to the highest level since 2018, and domestic inflation in the United States and Russia is also rising. The rise in oil prices Fueling concerns about inflation.
The United States and Russia are trying to broker an agreement
Since talks broke down last week, the parties involved have been trying to get OPEC and its allies to return to the negotiating table and resume plans to increase monthly output by 400,000 barrels.
The United States has been publicly saying that it is urging the organization to resolve differences and ensure that the crude oil market is adequately supplied. A White House spokesperson issued a statement saying that the United States is paying close attention to the OPEC+ negotiations and their impact on the global economy. Although the United States is not a party in the negotiations, government officials have been in contact with the governments of relevant countries to urge the organization to reach a compromise so as to The oil production increase plan can continue to advance.
According to OPEC+ representatives, privately, Russia has also been looking for ways to restart negotiations.
But despite this, OPEC+ representatives said that both Saudi Arabia and the UAE adhere to their respective positions. There is no sign that there is an urgent demand for another meeting, which means that even if the next meeting is held, the discussion will be September supply.
There is currently a huge demand for oil. It is estimated that the daily oil supply gap in the oil market reached 2.3 million barrels in June, the highest level since the outbreak.
Goldman Sachs predicts that by the third quarter of 2021, oil prices will rise to at least US$80 per barrel or even higher, reaching prices of US$85 to US$90 per barrel. </p
