Oil Oil, OPEC + talks have not reached an agreement to increase supply with Investing.com

By Doris Yu

Investing.com – Oil was in Asia on Tuesday morning after failing to reach an agreement to increase fuel production in August after trading days.

It rose 0.38% to $ 77.45 at 22:19 ET (02:19 GMT) and rose 2.06% to $ 76.72.

Investors are waiting for the U.S. crude oil supply later today.

In the face of demand, the economic recovery of COVID-19 in key markets, including China and the US, is increasing fuel demand and draining the accumulation of inventories. The American Petroleum Institute in June asked OPEC + to maintain market balances amid higher global fuel demand.

OPEC + talks fell while one of the members of the cartel is trying to increase supply in the United Arab Emirates while Saudi Arabia is proposing to tighten production coverage. Meanwhile, the cartel disagreed about the date of the OPEC + meeting.

Investors were concerned that it could turn into a conflict as devastating as the 2020 price war.

OPEC + added about 2 million barrels a day from May to July to revive the supply it suspended on COVID-19. The cartel would increase its daily supply by an additional 400,000 barrels from August 2021 to April 2022. The United Arab Emirates, however, did not accept the proposal unless it provided the same conditions for calculating Saudi Arabia’s quota.

In the short term, the market would not expect production to increase in August and the market will be a few barrels in the global economic rebound.

“As the oil market is already in deficit and supply growth is lagging behind the growth in oil demand,” the current OPEC + production limits will likely lead to higher prices, Giovanni Staunovo UBS Group AG (SIX 🙂 product analysis told Bloomberg.