OPEC+ cancel a scheduled meeting Monday, dashing hopes for an agreement to increase production to satisfy the world’s growing demand for Oil. Oil Prices climbed higher on the news.The price of Brent crude, the global benchmark which has surged roughly 50% this year, rose another 1% to top $77 a barrel. No new date for a meeting was set after the announcement that that meeting was cancelled. The official statement Sood that the date of the next meeting will be decided in due course.
The high drama comes as Americans hitting the road for the Fourth of July holiday are greeted by a seven-year high in gasoline prices, adding to inflation headaches already hitting the economy. The average price of a gallon of regular gas in the United States stands at $3.13, up 95 cents, or 44%, from a year ago.US Oil Prices finished above $75 a barrel on Thursday for the first time in nearly three years. They are now trading near $75.50. It’s a remarkable recovery from April 2020 when crude crashed to a negative $40 a barrel. The rebound has been driven in part by soaring demand for gasoline and jet fuel as the pandemic winds down and health restrictions ease.
For many years, the UAE and Saudi Arabia have been close partners, forming the region’s most important alliance and a powerhouse within OPEC. Saudi Arabia is the de facto leader of OPEC and the UAE was its third-biggest producer in 2020. The relations between the two nations have been tense recently and analysts said that could factor into the current OPEC deadlock.