Saudi, UAE reach deal over oil output quotas

• The two countries had sparred over how much oil Abu Dhabi would be allowed to produce under a proposed deal that sought to add an extra 2 million barrels per day of crude

• Saudi, UAE discord have roiled oil prices after the latter expressed its unwillingness to restrict oil production

The major OPEC producers Saudi Arabia and the United Arab Emirates have reached a  deal in a standoff over crude output quotas, media reports said.

Earlier this month, the two countries had sparred over how much oil Abu Dhabi would be allowed to produce under a proposed deal that sought to add an extra 2 million barrels per day of crude to the market to cool oil prices.

In recent weeks, falling US inventories, and signs of strong Asian demand from both China and India pushed up oil prices.

The prices have also been roiled by the discord between Saudi Arabia and the United Arab Emirates over the oil output cuts with the latter no longer willing to restrict its production.

Brent crude fell by roughly $1 towards $75 per barrel after Reuters reported that Saudi Arabia and the UAE had reached a deal, 

Last year, crude prices had touched rock bottom after Covid-19 pandemic triggered blanket lockdowns across the world. 

But oil markets stabilised after OPEC+ agreed to record output cuts of roughly 10 million bpd.