Fuel prices are expected to come down shortly as the OPEC+ grouping on Sunday agreed to add more barrels to the market.
According to a report by Times of India, the grouping, which includes Russia, decided to raise production by 400,000 barrels per day (bpd) from August till December to restore 2 million bpd of production, or about 44% of India’s daily requirement. It also agreed on a higher production quota for United Arab Emirates, Iraq and Kuwait – all India’s major suppliers.
The energy minister of the United Arab Emirates said Sunday that OPEC and allied countries have reached a “full agreement" after an earlier dispute that roiled oil prices.
The comments by Suhail al-Mazrouei to journalists came after an online meeting to reach a deal. He offered no immediate details, though Saudi Energy Minister Prince Abdulaziz bin Salman suggested there would be adjustments to production limits among the group.
Earlier this month, talks over productions fell apart in part over the United Arab Emirates wanting to increase its own production levels.
That sparked tension between it and Saudi Arabia, long the heavyweight of the Vienna-based cartel, amid other disagreements between the two neighboring Gulf Arab nations.
Prince Abdulaziz deferred at the beginning to al-Mazrouei in a sign of respect.
“The UAE is committed to this group and will always work with it and within this group to do our best to achieve the market balance and help everyone," al-Mazrouei said.
Oil prices collapsed amid the coronavirus pandemic as demand for jet fuel and gasoline dropped in lockdowns across the globe, briefly seeing oil futures trade in the negatives. Demand since has rebounded as vaccines, while still distributed unequally across the globe, reach arms in major world economies.
Benchmark Brent crude oil traded around $73 a barrel Friday.