Saudis, Russia Have Tentative Deal for Gradual OPEC+ Output Hike - Bloomberg
Saudi Arabia and Russia reached a tentative agreement to gradually increase OPEC+ oil output, but prices kept rising as the cartel looked set to keep a firm grip on supply.
Negotiations over the details of the supply hike are still underway, delegates said, asking not to be named because the information is private. The proposal under discussion would add about 2 million barrels a day to the cartel’s output from August to December, they said.
Oil prices rose, jumping above $75 a barrel in New York for the first time since 2018, as the outlines of the deal suggested OPEC+ was sticking to its policy of keeping the market tight even as concern grows about rising inflation.
“The price reaction says everything,” said Giovanni Staunovo, a commodity analyst at UBS Group AG. “The supply increase would be less than market participants expected and demand is still expected to rise into August.”
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