Oil uncertain as Saudi-UAE output feud continues
Oil stood ambiguous on Wednesday morning in Asia, but stayed afloat the $73 mark, as the output feud between Saudi Arabia and the United Arab Emirates (UAE) continued. The disagreement between the two Arab countries has delayed the Organization of the Petroleum Exporting Countries and allies’ (OPEC+) plans to increase output as the global demand for fuel rises.
Brent oil futures dipped 0.5% to $74.49 by 10:16 PM ET (2:16 AM GMT) while WTI futures rose 0.5% to $73.41, after ending the previous session with a 2.4% loss. Prices had been racing towards the highest intraday level since 2014 earlier this week amid speculations that the dispute would stop crude from being put back in the market.
The black gold’s buyers are already starting to feel the effect of the continuing dispute, as Saudi Aramco increased the selling price of Arab Light crude by 80 cents a barrel to $2.7 above the regional benchmark in the Asian market.
The increase is the largest month-on-month gain this year and hints that the company will not be increasing supply in August. It is also indicative of a tapering market as the OPEC+ disagreement could mean that supplies will not increase in August.