Oil down in Asia as Saudi-UAE output feud persists
Oil was down on Monday morning in Asia as supplies remained uncertain amid the continuing disagreement between Saudi Arabia and the United Arab Emirates (UAE).
Brent oil futures dipped 0.11% to $75.47 by 10:05 PM ET (2:05 AM GMT) and WTI futures inched down 0.03% to $74.54.
The disagreement within the Organization of the Petroleum Exporting Countries and allies (OPEC+) regarding the production levels from August remains unresolved. The UAE’s objection to the proposed eight-month extension to the OPEC+ output curb, which prompted the feud with its Arab neighbor Saudi Arabia, caused concerns over a possible price war not unlike the April 2020 price war between Saudi Arabia and Russia.
Investors are still weighing in on last week’s crude oil data from the US Energy Information Administration and the American Petroleum Institute that revealed draws of 6.866 million barrels and 7.983 million barrels, respectively.
The rise in the number of COVID-19 cases due to the novel Delta variant and the low vaccination rates in some countries pose a threat to the global economic recovery, finance ministers from the Group of 20 (G20) remarked on their Saturday meeting in Venice. The increasing number of cases has prompted the affected countries to put restrictions back in place, putting fuel demand outlook in uncertainty.