Deal blocked ‘last minute’, crude oil falls By Investing.com

Deal blocked ‘last minute’, crude oil falls By Investing.com
Deal blocked ‘last minute’, crude oil falls By Investing.com

© Reuters.

By Gina Lee

Investing.com – The $ 76 a barrel level breaks down after OPEC + failed to agree on production levels, which could cause commodity prices to spike inflation.

At 09:30 CEST, Brent crude oil futures are down 0.2% to $ 75.69, while losing contracts are down 0.15% to $ 75.11.

According to sources, the UAE literally blocked at the last minute an agreement that seemed to have been written, forcing the cartel to postpone the decision on monthly production. The stalemate could end with a maintenance of current production levels, bringing OPEC + back to the previous terms and therefore anchored until April 2022 on these production levels.

Before the ‘confrontation’, OPEC + had agreed, in principle, to increase production by 400,000 barrels per day from August to December. Ministers of the organization will meet again today as the current result leaves the market in limbo and tarnishes the cartel’s own reputation after last year’s price war between Saudi Arabia and Russia.

If OPEC + does not mend the internal tear, the possibility of an increase in crude oil will add to mounting inflationary pressures in the global economy. Oil has just finished its best half year since 2009, with the rebound in demand in major economies outpacing supply response. In a note, analysts from Citigroup (NYSE

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