Saudi Arabia and UAE reach an agreement on oil output, according to OPEC+ source

Saudi Arabia and the UAE have reached an agreement on the OPEC+ oil supply accord.

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An OPEC+ source stated on Wednesday that Saudi Arabia and the United Arab Emirates have reached an agreement on the OPEC+ oil supply accord, according to Reuters. After the existing agreement expires in April 2022, the UAE’s baseline will be 3.65 million barrels per day, according to the source.

On July 1, the UAE blocked a deal by the Organization of Petroleum Exporting Countries, known as OPEC+, to relax oil restrictions. According to this plan, oil output will increase by 400,000 barrels per day each month from August through December. It would also have prolonged the term of the wider OPEC+ agreement, making the final expiry of the cuts in December 2022 rather than April 2022.

This agreement was also supported by the leading producers Russia and Saudi Arabia, seen as the de facto leaders of OPEC. However, the deal was rejected by the UAE, which has demanded that it re-adjust its production and baseline limits and urged that it would reject the deal until the baseline for its own reduction is modified.

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