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OPEC+ Oil Deal Hangs in the Balance as Key Member Rebels

  • UAE rejects deal until baseline for its own cuts is changed
  • Oil prices jumped on the spat on Thursday; ease early Friday
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WATCH: The OPEC+ meeting is set to resume on Friday after talks broke down when the UAE blocked a deal to loosen crude supplies.(Source: Bloomberg)
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The OPEC+ alliance descended into bitter infighting after a key member blocked a deal at the last minute, forcing the group to postpone its meeting and casting doubt on an agreement that could ease a surge in oil prices.

The standoff between the United Arab Emirates and the rest of the cartel could ultimately mean that OPEC+ won’t increase production at all, according to a delegate. Without a deal it would fall back on existing terms that call for output to remain unchanged until April 2022. That would squeeze an already tight market, risking an inflationary price spike.