Oil Slips

Prospect Of Rising OPEC+ Supply

Oil prices dropped early on Thursday as the market assesses the prospect of higher crude supply from the OPEC+ group after a reported compromise between key OPEC members Saudi Arabia and the United Arab Emirates (UAE). As of 11:21 a.m. EDT on Thursday, WTI Crude prices were down by 0.53 percent at $72.78 and Brent Crude was falling by 0.56 percent at $74.37.

Oil prices extended losses from Wednesday, when the market fell sharply after reports emerged that Saudi Arabia and the UAE had resolved their nearly two-week-long standoff over baseline production levels that was blocking a unanimous OPEC+ deal on oil supply. Under the compromise, the UAE will see its baseline production level lifted to 3.65 million barrels per day (bpd) after the current pact expires in April 2022, according to a Reuters source. The current baseline for the UAE is around 3.17 million bpd.

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