OPEC+ meeting canceled, oil prices rise

oil prices Got on the news. The price of global benchmark Brent crude, which has risen nearly 50% this year, rose another 1% to $77 a barrel. no new date A meeting was scheduled for after the announcement that that meeting had been cancelled.

“The date of the next meeting will be decided in due course,” the official statement said.

The high drama comes when Americans who hit the street for the Fourth of July holiday are greeted by a Petrol prices at seven-year high, adding to the inflationary headache already affecting the economy. The average price for a gallon of regular gas in the United States is $3.13, 95 cents, or 44% higher, than a year ago.

US oil prices ended above $75 a barrel on Thursday for the first time in nearly three years, and are now trading near $75.50. This is a marked improvement from April 2020, when crude fell to negative $40 a barrel.

The rebound has been driven partly by rising demand for gasoline and jet fuel as the pandemic winds down and health restrictions ease.

Wall Street analysts said only OPEC+ could come to the rescue by pumping more oil to meet rising demand.

Yet supplies are being held back because of an agreement between OPEC and allies including Russia, a grouping known as OPEC+. The partners have only slowly added back production that it aggressively sidelined during last year’s oil crash.

OPEC member the United Arab Emirates, which has invested heavily in boosting its output in recent years, has publicly argued that the baseline from which production cuts are calculated is too low.

UAE Energy Minister Suhail Al Mazrouei said over the weekend that the current deal was not “fair”, arguing that it was forced to idle a third of its output, while other countries were forced to waste more relative to their maximum output. Pumping was allowed.

“We cannot go ahead with the agreement or make a new agreement under the same conditions. We have a sovereign right to negotiate that,” the minister said in an interview on Sunday.

For many years, the United Arab Emirates and Saudi Arabia have been close partners, forming the region’s most important alliance and a powerhouse within OPEC. Saudi Arabia is the de facto leader of OPEC and the UAE was its third largest producer in 2020.

Yet relations between the two countries have been strained recently and analysts said the current OPEC standoff could be a factor. In fact, some OPEC watchers see a risk that the UAE could abandon the cartel altogether.

– CNN Business’ Chris Isidore contributed to this report

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