Oil continues to falls after OPEC+ resolves Saudi-Emirati dispute

Oil prices fell on Thursday, deepening losses for the second straight day, due to over growing oversupply concerns, after Saudi Arabia and the UAE resolved their, which led to suspending a new output hike plan starting from August, which comes in tandem with a rise in the US production.

US crude fell 1.6% to $71.70 a barrel, after opening at $72.89, and hit a high at $72.93, and Brent crude fell 1.3% to $73.52 a barrel, after opening at $74.50, and hit a low at $74.54.

The US crude lost 3.1% yesterday, and Brent crude fell 2.5%, in the second daily loss out of 3 days, after Saudi Arabia and the UAE resolved their dispute.

Reuters quoted informed sources that Saudi Arabia and the UAE were able to resolve their dispute over OPEC+ production policy, and set a higher baseline output level for the UAE.

The dispute sparked after the UAE objected to a proposal to increase output by 2 million barrels per day from August to December, and to extend the entire cuts until the end of 2022.

The Energy Information Administration reported yesterday that the US crude inventories fell 7.9 million barrels, during the week ending July 9, while analysts forecasts a drop by 4.3 million barrels.

The total commercial inventories fell to the lowest level since the week ending on January 31, 2020 at 437.58 million barrels, in a positive sign of the US demand levels.

While the US output rose 100,000 barrels last week, with the total at 11.4 million barrels per day, which is the highest level since May 2020.

Otherwise, the possible return of Iranian supplies to global markets has receded, without any signs on resuming talks about reviving the 2015 nuclear agreement until mid-August.