OPEC+ deadlocked over raising oil output, to resume talks on Tuesday

 

OPEC+ will resume talks after reaching a deadlock over February oil output levels as Saudi argued against pumping more due to new lockdowns while Russia led calls for higher production

By Ahmad Ghaddar, Rania El Gamal and Olesya Astakhova

LONDON/DUBAI/MOSCOW (Reuters) -OPEC+ will resume talks on Tuesday after reaching a deadlock over February oil output levels as Saudi Arabia argued against pumping more due to new lockdowns while Russia led calls for higher production citing recovering demand.

The unusual decision to push negotiations into a second day was taken after a three-hour debate in a virtual meeting of OPEC+, which groups OPEC and other producers including Russia. The talks are scheduled to resume at 1430 GMT on Tuesday.

OPEC+ sources told Reuters that Russia and Kazakhstan had backed raising production while Iraq, Nigeria and the United Arab Emirates suggested holding output steady.

On Sunday OPEC Secretary General Mohammad Barkindo had warned OPEC+ experts of downside risks facing the oil market.

On Monday, Saudi energy minister Prince Abdulaziz bin Salman said OPEC+ should be cautious despite a generally optimistic market environment as demand remains fragile and the new variant of coronavirus is unpredictable.

"In many parts of the world, where infection rates have increased worryingly, a new wave of lockdowns and restrictions are being put in place, which will inevitably impact the rate of economic recovery in those countries," he said.