After the Saudi-UAE crisis, oil prices fall over output and production restrictions

On Thursday after the OPEC meeting set for one day before was postponed owing to Saudi clashes over disagreements, oil prices rose momentarily before collapsening.

Brent Crude Oil, the highest price since October 2018, received $77,84 per barrel prior to the settlement of $74,53 for each barrel on Tuesday.

The highest cost of WTI crude oil since November 2014 was $76.98 per barrel, before dropping on Tuesday to $73.37 per barrel.

On Monday, following a series of negotiations between OPEC Members, Russia and other oil suppliers, Saudi Arabia, the OPEC's biggest producer, and the UAE failed in converging.

Saudi Arabia and the UAE challenged how OPEC countries are planning to raise petroleum production and prolong existing OPEC+ oil production limitations.

Instead of allowing Saudi Arabia to expire in April 2022, it offered to increase the entire OPEC oil production of producers by a level of 2 million barrels per day (BPD) between August and December.

Although the United Arab Emirates endorsed the plan to increase oil production by BPD 2 million, they rejected the notion of extending OPEC+ limits beyond April 2022.

Sources inside OPEC+ remain confident that OPEC members will begin negotiations on increasing oil output from August and on current limits later in this month. But no date has been scheduled for further negotiations.

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