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Oil rises as markets await OPEC+ talks today

5 Jul 2021 11:22 AM

Oil prices rose slightly today, as traders awaiting crucial talks by OPEC+ after a disagreement over output within the group that could lead to major producers increasing volumes to grab market shares.

Brent crude surged in the beginning of the trading hours, and it is moving around the levels of $76.20 dollars per barrel. US crude also rose and it is trading slightly below the level of $75 a barrel, following its rise last week by 1.5%, which is the sixth consecutive week of gains.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, voted on Friday to increase production by about two million barrels per day from August to December 2021 and to extend the remaining production cuts until the end of 2022, but objections from the United Arab Emirates blocked the agreement.

Public discord has been rare among group members, while national interests increasingly diverge, affecting OPEC+ policy where oil users want more crude as their economies recover from the coronavirus pandemic.

Prince Abdulaziz bin Salman, energy minister of Saudi Arabia sought to undo the UAE's opposition to the proposed deal, calling on Sunday for "compromise and rationality" to gain consensus when the group meets again today.

In the United States, energy companies increased oil and natural gas rigs for a third time in four weeks. In its closely watched report on Friday, Baker Hughes said the oil and gas rigs count, an early indicator of future production, increased by 5 to 475 in the week to July 2, its highest since April 2020.

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