OPEC+ impasse means tight oil market now, volatility ahead, says IEA | Reuters
The oil market will see tighter supply for now amid a dispute inside OPEC+ about how to ease production curbs but it still faces the risk of a dash for market share if disagreement persists, the International Energy Agency (IEA) said on Tuesday.
The Paris-based agency said oil prices would be volatile until differences were resolved among members of OPEC+, which groups the Organization of the Petroleum Exporting Countries, Russia and other oil producers. read more
"The OPEC+ stalemate means that until a compromise can be reached, production quotas will remain at July's levels. In that case, oil markets will tighten significantly as demand rebounds from last year's COVID-induced plunge," an IEA report said.
OPEC+ has been slowly unwinding record output curbs agreed last year to cope with the pandemic. But a dispute over policy between Saudi Arabia and United Arab Emirates this month meant plans to pump more oil by the end of 2021 were put on hold.
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