OPEC+ ministers will come together on Sunday for another meeting as members look for an oil output boost agreement while oil prices soar as the global economy recovers from the coronavirus pandemic.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC+ group, are holding the special meeting Sunday after the UAE rejected plans that had been approved by the other 22 group members to increase output.
OPEC+ last year agreed record output cuts of almost 10 million barrels per day (bpd) to cope with a pandemic-induced slump in demand and gradually relaxed them to about 5.8 million bpd.
The group had planned to ease the reduction by a further 2 million bpd from August until December 2021 because oil prices have climbed to 2-1/2 year highs.
An OPEC+ source told Reuters on Sunday key OPEC+ producers had already reached a preliminary deal on gradually raising oil output until December 2021 and extending their overall pact until the end of 2022, but some details have yet to be agreed.
Saudi Arabia has urged caution in raising output, and had suggested extending the current supply management deal until December 2022, from its current deadline of April 2022. The UAE, however, argued that it wanted a higher output quota in the agreement should the supply deal be extended.
The producers need to decide when those higher output quotas, known as baselines, would be set in place. Sources have told Reuters the UAE might see its baseline being raised to 3.65 million bpd from April 2022 from the current 3.168 million.
Sunday’s special meeting will be held virtually and start at 1000 GMT, according to OPEC.