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OPEC + sources said no progress had been made in resolving the issue and the meeting on Monday was canceled without a new date being agreed.
OPEC + ministers suspended talks on oil production on Monday when the United Arab Emirates last week proposed an eight-month extension to exit tapes.
Saudi Arabia’s Energy Minister Abdulaziz bin Salman on Sunday called for “commitment and rationality” to reach an agreement, following a two-day talks that failed last week.
On Monday, OPEC + sources said no progress had been made in resolving the issue and Monday’s meeting was canceled. No new date was agreed.
The failure of the talks, sources said, means production growth expected from August will not happen, which helped boost Brent’s international oil benchmark, which was trading at an additional $ 76.95 per barrel.
Oil prices have already raised concerns about inflation, preventing the global recovery from the coronavirus pandemic.
OPEC + ministers agreed last year to record reductions of nearly 10 million barrels (bpd) a day in the wake of the pandemic. They have gradually relaxed and are about 5.8 million bpd.
The Basque Country, according to sources, went on Friday with Saudi Arabia and other OPEC + members with a proposal to increase production in the production phase from August to December from December to December, but rejected the cuts made until the end of 2022. data.
The Basque Country is angry with the main basis on which its production reductions are being calculated and wants to increase it. Abu Dhabi has invested billions of dollars to increase production capacity and said its base was too low when OPEC + signed the treaty.
The BAC also said it was not the only one to demand a higher base because others, including Azerbaijan, Kazakhstan, Kuwait and Nigeria, have requested and received others since the agreement was first agreed last year.
The OPEC + decision, which brings together the Organization of the Petroleum Exporting Countries with Russia and other major producers, must be taken unanimously.
The potential results, according to OPEC + sources, are an increase in the output in August or an increase in the output in August and the extension of the rest of the cuts with the new basic figure for the Basque Country.
OPEC + could move forward with the agreement until April 2022 and could discuss a new basis for the Basque Country within a new agreement, sources said.
The conflict reflects the growing divergence between Saudi Arabia and the Basque Country.
The two nations built a regional alliance, combining financial and military muscle to deal with a conflict in Yemen and project power elsewhere. The Basque Country has taken action in Yemen, and Saudi Arabia has sought to question the dominance of the Basque Country as a regional business and tourism hub.
In August 2020, the Basque Country also agreed to normalize relations with Israel, and Saudi Arabia has no official diplomatic relations with Israel.
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