MOSCOW, July 7. /TASS/. Internal consultations between the OPEC+ countries continue after the failed meetings in early July, but no new meeting is planned this week, participants in the process told TASS.
"This week will be difficult. Negotiations are in progress, and there are no signs yet that the meeting will take place this week. The problem remains unresolved," a high-ranking source told TASS.
Another delegate also confirmed that they "did not hear anything about the preparations for the meeting" this week.
OPEC+ countries have not been able to agree on the terms of easing production restrictions until the end of this year since early July. On the one hand, everyone agrees that the market needs additional volumes and is ready to increase production by two mln bpd at a smooth pace in August-December. Another dilemma has not yet been resolved by the allies. Saudi Arabia, OPEC's largest oil producer, insists that OPEC+ countries should simultaneously renew the agreement, which expires in April 2022, until the end of next year.
The United Arab Emirates opposes the idea, noting that base levels of oil production for quota calculation should be revised. Now for all countries except Russia and Saudi Arabia, a basic cut-off was the level of oil production in October 2018. In particular, the UAE does not agree to extend the deal for another eight months in 2022 under the old parameters. They ask to increase this value for themselves from 3.2 mln bpd to 3.8 mln bpd. The UAE also proposed separating these two issues and discussing the prolongation of the deal at one of the next meetings, and now only agree to increase production until the end of this year.
OPEC+ ministerial talks have been ongoing since July 1, but so far, no progress has been made. Each side continues to hold ground.