OPEC+ talks on oil-supply increase stall

OPEC+ talks on Friday about a deal to gradually increase oil supply during the rest of this year were postponed until Monday, as members failed to agree on new terms to accommodate requests from some countries.

The group, an alliance of OPEC members and 10 other oil-producing nations led by Russia, had agreed initially on a proposal to increase output by about 400,000 barrels of crude a day each month from August through December, and to extend the broader agreement to continue to limit output, which is due to expire in April next year, until end of 2022.

Although this agreement fell apart, oil experts believe that a deal will be reached when the talks resume next week.

Saudi Arabia and Russia want to gradually increase the oil supply in the coming months to satisfy the growing demand as the world begins to emerge from pandemic lockdowns.

Prince Abdul Aziz Bin Salman, the Saudi energy minister, last month stressed the need to maintain a cautious approach to oil supply, even as the price of Brent rude, the global benchmark, surges. It has risen by more than 50 per cent this year to stand at $76 a barrel yesterday.