Adrenalin never stops flowing in the oil business. Dull moments are rare. The emerging scenario among the Organization of Petroleum Exporting Countries and their allies in the expanded OPEC+ is no different.
The group was on the verge of finalizing a deal on Thursday to increase its crude output by two million barrels per day (bpd) by the end of the year. This meant a monthly output increment of 400,000 bpd, beginning in August. That was 20 per cent less than the anticipated output deal.
Prior to the OPEC+ meeting last week, pundits believed that in view of rising global oil demand and escalating prices, the group could increase output by 500,000 bpd.
But Saudi Arabia, the OPEC kingpin, wanted to play it safe. Russia appeared to be in the same boat.
But drama and energy move side by side. This time, the United Arab Emirates played spoiler. OPEC+ members – except for the U.A.E. – agreed to ease production cuts, with a…