A meeting scheduled for Monday among OPEC members to discuss boosting oil production was canceled. Oil production had been reduced significantly due to the impact of the COVID-19 pandemic in 2020, gradually picking up since 2021. Despite inconclusive talks last week, the aim was to reach a decision this week.
Unexpectedly, key OPEC members, the United Arab Emirates and Saudi Arabia, withdrew from Monday’s talks, leading to the collapse of the discussions. Currently, the talks have not been rescheduled, creating a shortage of oil supply to meet the rising demand for summer travel, consequently resulting in higher gas prices.
Brent Crude, the global oil price benchmark, soared to over $77 per barrel, marking its highest level since October 2018. This increase compounds the already elevated gas prices experienced by American travelers over the Fourth of July weekend, with gas prices reaching a yearly high of $3.13 per gallon.
Oil jumps as OPEC+ fail to reach agreement https://t.co/LXkCDRZO5t pic.twitter.com/KU4x8c16xs
— Bloomberg Markets (@markets) July 5, 2021
The United Arab Emirates has expressed dissatisfaction with the wealth distribution among OPEC members compared to oil production. Energy Minister Suhail Al Mazrouei highlighted that his country had to limit its oil production while other OPEC nations could produce more.
“We cannot continue under these conditions. We have the right to renegotiate,” the Minister emphasized on Sunday.
