Saudi Arabia and U.A.E. reach deal on OPEC+ oil output

The OPEC+ standoff is officially over as Saudi Arabia and the United Arab Emirates reached a deal today on output levels.

An OPEC+ source stated that the U.A.E. is allowed to boost the baseline used to determine how much crude the OPEC+ member is allowed to pump.

OPEC+ talks on a proposal to lift production by a cumulative 2 million barrels a day between August and December fell apart earlier this month after the U.A.E. insisted that its baseline should be raised. Reports from Reuters states that the UAE’s baseline would be lifted to 3.65 million barrels per day after the current pact expires in April 2022.

Investors are still reacting to the news and Oil futures are marginally up. Brent futures is up 0.20%, currently trading at $76.67 a barrel while the U.S oil is trading at $75.31 a barrel, down 0.07%.