The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, called off Monday's planned meeting until further notice after postponing it twice last week, the group said in a note on Monday.
The group had remained on a stalemate due to the United Arab Emirates' (UAE) opposition to the proposed production levels.
OPEC+ meeting, which was originally scheduled to take place on Thursday, had been adjourned to continue next day for further consultations. However, the Friday meeting was also postponed due to objections from the United Arab Emirates (UAE).
The group's proposal was to boost output by 2 million barrels per day (bpd) until the end of the year with a gradual 400,000 bpd production increase in August to start. However, the UAE blocked the deal, demanding a higher production quota.
The group had previously agreed to gradually return 2.1 bpd of supply to the market during May through July, after which the curbs still in place will stand at 5.8 million bpd.
“The timing of this crisis is not too much of a surprise, as OPEC works best when faced with significant challenges, which are now unwinding as demand recovers,” Alan Gelder, vice president at Wood Mackenzie speaking after OPEC+ cancelled its policy meeting.
By the time the group announced their decision to call off the meeting, oil prices started to increase, reaching new high levels.
Brent reached $77.23 per barrel for a 1.39% rise after closing previous session at $76.17 a barrel, while American benchmark West Texas Intermediate (WTI) was at $76.37 per barrel at the same time for a 1.59% increase after it ended the previous session at $75.16 a barrel. Both benchmarks saw the highest prices since October 2018.
By Sibel Morrow