A source in OPEC Plus said today, Wednesday, that Saudi Arabia and the UAE have reached a compromise on the oil production agreement, by setting a higher reference production level for the UAE, according to Reuters.
The source stated that the reference production level for the UAE will be 3.65 million barrels per day after the end of the current agreement in April 2022.
The dispute between Saudi Arabia and the UAE arose publicly last week during the quest to reach a new agreement that would raise production starting from next August.
The dispute prompted the "OPEC Plus" group to cancel talks to increase production after negotiations for several days.
Last week, the White House said it was monitoring talks between OPEC and its allies.
And the countries affiliated with “OPEC Plus” agreed during the past year 2020 to unprecedented reductions in oil production by about 10 million barrels per day, or about 10% of global production, due to the impact of the Corona pandemic on demand.
The countries agreed to gradually return to pumping these quantities during the period until the end of April 2022. However, this period now appears to be very short in light of the current pace of production increase, and this prompted the proposal to extend the currently applied agreement until December 2022, It is an option that collided with the opposition of Abu Dhabi.