MOSCOW, July 2. /TASS/. Countries participating in the OPEC+ oil production cut deal will definitely find a compromise to further relax the restraints on the output of black gold, Ole Hansen, Head of Commodity Strategy with Saxo Bank, told TASS on Friday.
OPEC+ countries failed to agree on an extension of easing the oil production cuts at their meeting on July 1. Certain states, including the UAE, spoke in favor of reconsidering the baseline production level for the calculation of the cuts. These negotiations will continue today.
"OPEC+ will undoubtedly reach a compromise that will allow continued support for oil prices," Hansen said. The UAE "currently has around 30% of its production capacity lying idle having invested heavily in increased capacity since 2018, when the baseline was drawn. They may end up getting a small concession, perhaps from Saudi Arabia, who are very determined to support higher prices," he noted.
In the history of the OPEC+ deal, there are cases, when the baseline level was reconsidered. In particular, this was done earlier for Azerbaijan, Kuwait, Kazakhstan, and Nigeria.