Amid a dispute between Saudi Arabia and the United Arab Emirates, the Organization of the Petroleum Exporting Countries and other major oil producers, collectively known as OPEC+, called off talks (Bloomberg) about global oil supply without reaching an anticipated deal to increase output. The breakdown in talks sent the West Texas Intermediate crude oil benchmark price to hit its highest level (CNBC) in six years.
OPEC+ countries jointly cut oil production at the start of the pandemic and were expected to approve a Saudi- and Russia-backed plan to increase production levels, building on a previous increase in May. But talks were called off after a disagreement over how the UAE would calculate its production quota, underscoring a growing economic rivalry (Reuters) between Saudi Arabia and the UAE. Tensions between Riyadh and Abu Dhabi have risen over Saudi Arabia’s push to become a regional trade and business hub and over the countries’ diverging positions on the war in Yemen.
