The Saudis have also been eager to extend the production agreement, which would ensure that the group’s output remains restrained for another year. The tensions are an indication that increasing demand for oil, and rising oil prices, can test OPEC Plus. Producers like the United Arab Emirates and Iraq want to make sure they don’t miss out on opportunities to sell more oil. Oil prices have risen about 85 percent since late last year as global economies restart after the coronavirus pandemic. OPEC Plus has kept a tight leash on production during this recovery, keeping several million barrels a day of potential output offline.

Source: International New York Times July 05, 2021 17:48 UTC