IEA: Stalled Talks in OPEC+ May Lead to a Price War in Light of High Demand

Stalled talks among major oil producers about pumping more supplies could deteriorate into a “price war”, the International Energy Agency said Tuesday, July 13, as COVID-19 vaccines drive up crude demand.

The agency added that the possibility of a battle for market share threatens markets, even if it is a remote possibility, as well as the possibility of rising fuel prices threatens to fuel inflation and damage a fragile economic recovery.

A dispute occurred at the last OPEC+ meeting between Saudi Arabia, the largest oil exporter in the world, on the one hand, and the UAE, on the other, which caused the meeting to be canceled over a dispute over oil production and export policy until the end of the year.

Russia stated that it will work to bring the two countries closer to reach solutions that satisfy both parties to save the OPEC + agreement.