EghtesadOnline: Oil prices were steady on Monday with investors and traders awaiting crucial talks by OPEC+ following disagreement over output within the group that could lead to major producers pumping up volumes to grab market share.
Brent crude was up 4 cents at $76.21 a barrel, after falling 1 cent last week, the first weekly decline in six. US oil also gained 4 cents, trading at $75.20 a barrel, having risen 1.5% last week, the sixth consecutive week of gains for the contract, CNBC reported.
The Organization of Petroleum Exporting Countries and its allies, known as OPEC+, voted on Friday to increase production by about 2 million barrels a day from August to December 2021 and to extend the remaining output cuts to the end of 2022, but objections from the UAE prevented an agreement.
It was a rare public disagreement between members of the group, with national interests increasingly diverging, which is impacting OPEC+ policy as oil users want more crude as their economies recover from the Covid-19 pandemic.
"Failing to come to a deal may provide some brief upside to the market," ING Economics said in a note.
"However, realistically it could also signal the beginning of the end for the broader deal, and so the risk that members start to increase output," ING said.