WORLD NEWS

Oil Prices Surge After OPEC+ Calls Off Talks

Jul 6, 2021, 7:53 AM

(CNN)Oil prices soared on Tuesday after major producers, including Saudi Arabia and the United Arab Emirates, fell out over plans to increase production in the face of rising global demand.

The price of Brent crude, the global benchmark that has surged roughly 50% this year, rose above $77 a barrel to reach its highest level since October 2018.

U.S. oil futures increased 1.5% to $76.32, a remarkable recovery from April 2020, when prices crashed to negative $40 a barrel.

The surge comes after the Organization of Petroleum Exporting Countries and its allies, including Russia and Mexico, canceled a Monday meeting to discuss plans to lift production curbs as demand for oil recovers following the coronavirus pandemic.

The talks were carried over from last week after producers failed to agree on production increases. No new date for the meeting has been set.

OPEC+ has only gradually added back production that it aggressively sidelined during last year’s oil crash. But as economies reopen, manufacturing picks up and people start to travel again, demand for oil is outpacing supply and sending prices higher.

The high drama comes as Americans hitting the road for the Fourth of July holiday were greeted by a seven-year high in gasoline prices, adding to inflation headaches already buffeting the economy. The average price of a gallon of regular gas in the United States stands at $3.13, up 95 cents, or 44%, from a year ago.

Analysts have said that the only solution is for OPEC+ to pump more oil to meet surging demand. But members of the alliance disagree on how much oil should be added back to global supply.

OPEC member the United Arab Emirates, which has invested heavily in recent years to boost its production, has argued publicly that the baseline from which its share of cuts are calculated is too low. The UAE was OPEC’s third-biggest producer in 2020.

UAE Energy Minister Suhail Al Mazrouei said over the weekend that the current deal wasn’t “fair,” arguing it had been forced to idle one third of its production while other countries were allowed to pump more relative to their maximum output.

“We cannot extend the agreement or make a new agreement under the same conditions. We have the sovereign right to negotiate that,” the minister said in a televised interview on Sunday.

For many years, the UAE and Saudi Arabia, the de facto leader of OPEC, have been close allies.

But relations between the two nations have been tense more recently and analysts said that could factor into the current OPEC deadlock. In fact, some OPEC watchers see a risk that the UAE could leave the cartel altogether.

— Chris Isidore, Hanna Ziady and Matt Egan contributed to this report.


The-CNN-Wire
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

KSL 5 TV Live

World News

LONDON, ENGLAND - JUNE 21: Italy's Foreign Minister Antonio Tajani addresses the opening session on...

Nicole Winfield, Associated Press

Israel gave US last-minute warning about drone attack on Iran, Italian foreign minister says at G7

The United States told the Group of Seven foreign ministers on Friday that it received “last minute” information from Israel about a drone action in Iran, Italy’s foreign minister said.

4 hours ago

air strike seen from a distance...

CNN

Israel has carried out a strike inside Iran, US official tells CNN, as region braces for escalation

Israel has carried out a military strike inside Iran, a US official told CNN Friday, a potentially dangerous escalation in a fast-widening Middle East conflict that Iranian government officials have so far sought to play down.

4 hours ago

This is a locator map for Iran with its capital, Tehran. (AP Photo)Credit: ASSOCIATED PRESS...

Jon Gambrell, Associated Press

Iran fires at apparent Israeli attack drones near Isfahan air base and nuclear site

Iran has fired air defenses at a major air base and a nuclear site near its central city of Isfahan after spotting drones.

11 hours ago

Mount Ruang spewed hot lava and ash columns into the night sky on April 17, as seen from Sitaro, No...

Kathleen Magramo, CNN

Indonesia issues tsunami alert after volcano erupts on remote island

Indonesian authorities on Wednesday ordered hundreds of villagers to evacuate following multiple eruptions of a remote island volcano, raising fears it could collapse into the sea and trigger a tsunami.

23 hours ago

People wade through a street flooded by heavy rain in Peshawar, Pakistan on Monday, April 15.
Manda...

Sophia Saifi, Asim Khan, Masoud Popalzai, Irene Nasser and Kathleen Magramo, CNN

More than 100 killed across Pakistan and Afghanistan as flash floods and heavy rains sweep the region

Unseasonal rainfall has lashed Pakistan and Afghanistan over the past few days, killing more than 100 people across the neighboring countries

2 days ago

Cars are stuck on a flooded road after a rainstorm hit Dubai, United Arab Emirates on Wednesday. (R...

Nadeen Ebrahim, Mary Gilbert and Brandon Miller

Chaos in Dubai as UAE records heaviest rainfall in 75 years

Chaos ensued in the United Arab Emirates after the country witnessed the heaviest rainfall in 75 years.

2 days ago

Sponsored Articles

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Oil Prices Surge After OPEC+ Calls Off Talks