Opec+ supply talks end in deadlock

Opec+ failed to reach an agreement on raising oil output on Friday, extending the impasse into a second successive day.

Opec+ resumed talks on oil output levels on Friday after they failed to reach a consensus in discussions on Thursday.

The alliance said it would resume discussions on Monday at 3pm Vienna time.

Global oil prices notched gains on news of the impasse. Worldwide standard Brent crude added 0.44 per cent, while the US benchmark WTI inched down slightly, falling 0.09. On Thursday, both benchmarks hit three year highs.

Read more: Oil prices hit highest levels in three years

Sources expect the alliance to ramp up production by 2m barrels per day between August and December of this year.

Monday’s meeting will be closely monitored for any news on supply increases amid mounting fears that inflation could spiral out of control, partly driven by sharp rises in commodity prices.

Saudi Arabia and Russia put forward plans to increase production by 400,000 barrels each month between August and December, which other members have supported.

The two countries also pushed to prolong a supply deal among Opec+ producers beyond next April, when it was set to expire, into the latter half of 2022. 

However, the talks hit an impasse after the UAE objected to the prolonging of any deal without re-evaluating its own production allocation, noting that its quota was too small to reach its maximum potential output.

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