Saudi Arabia and the United Arab Emirates have reached a compromise on the oil production increase policy within the framework of the organization of Petroleum Exporting Countries (OPEC) and its non OPEC partners (OPEC +) on July 14, local time, according to media sources quoted by insiders. Saudi Arabia agreed to raise the production reduction benchmark of the United Arab Emirates in exchange for the agreement of the United Arab Emirates to extend the overall production reduction agreement from April 2022 to the end of that year.

On the same day, the UAE's Ministry of energy issued a statement saying that the relevant review work is still in progress and no agreement has been reached with OPEC + on the production reduction baseline.

Previously, OPEC and its non OPEC partners originally planned to hold a meeting at the beginning of this month to discuss the next step of production scale. However, due to serious differences, members held several rounds of consultations, and the meeting was repeatedly postponed.

Saudi Arabia has proposed a small increase in production, advocating that OPEC members increase their average daily output by 400000 barrels a month from August to December; At the same time, we hope to extend the current production reduction agreement to the end of 2022. This idea is supported by all members except the UAE. The UAE side believes that it is too early to discuss the extension of the production reduction agreement. If it wants to accept the extension conditions, it must agree to substantially increase the daily crude oil production of the UAE. Saudi Arabia clearly opposes this, saying that it should not sacrifice the overall interests for the appeal of a country in the United Arab Emirates.