The OPEC logo pictured ahead of an informal meeting between Organization of the Petroleum Exporting Countries (OPEC) members in Algiers, Algeria.
Ramzi Boudina | Reuters
OPEC+ ministers plan to hold their next meeting on Sunday to decide production policy, three sources within the producer group told Reuters on Saturday.
The development comes after Saudi Arabia and the United Arab Emirates (UAE) reached a compromise last week in a dispute over OPEC+ policies, in a move that should open a deal to supply more crude to a tight oil market and cool rising prices.
The Organization of the Petroleum Exporting Countries, along with Russia and other allies, a group known as OPEC+, has yet to make a final decision on production policy after talks were halted earlier this month over the dispute between Saudi Arabia and the UAE.
OPEC could not be reached for comment outside normal business hours.
Sunday’s meeting will be held virtually, like all these discussions since last year.
OPEC+ hit a record production cut of nearly 10 million barrels per day (bpd) last year to deal with a pandemic-induced decline in demand, which has since gradually eased and now stands at around 5.8 million barrels per day.
The dispute between Riyadh and the UAE came into the public eye after previous OPEC+ talks, with both expressing concerns over details of a proposed deal that would have added an additional 2 million bpd to the market and extended the pact until the end of 2022.
The aim was to ease upward pressure on oil prices, which have recently risen to their highest level in 2 1/2 years.
An OPEC+ source said last week that Riyadh had agreed to Abu Dhabi’s request for the UAE’s baseline – the level from which cuts under the OPEC+ supply constraints agreement are calculated – to be set at 3.65 from April 2022. million barrels per day, versus 3.168 million.