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Oil prices hit their highest level since late 2014 after the collapse of the “OPEC” talks

Global oil prices rose today, Tuesday, to their highest level since 2014, after the “OPEC +” meeting was postponed indefinitely, in light of the bloc’s failure to reach an agreement on production policy in the coming months.


Brent crude futures, the standard for September delivery, rose 0.54% to $77.58 a barrel, after yesterday recording their highest level since October 2018 at $77.78 a barrel.


And US "NYMEX" crude contracts for August delivery rose 1.92%, recording $76.60 a barrel, after yesterday hitting their highest level since November 2014 at $76.91 a barrel.


Negotiations collapsed on Monday between the 23 bloc countries after they failed to reach an agreement that satisfies all parties, and the meeting was canceled without specifying the date of the next meeting.


And media reports stated that the “OPEC +” group voted last Friday on a proposal to increase oil production by 400,000 barrels per day every month from August to December, so that the additional amount of oil put on the market by the end of the year would reach two million barrels per day, as it was. There is a proposal to extend the remaining production cuts until the end of 2022, but these proposals were not fully accepted, and "OPEC" announced that there was a split in opinions.


The immediate effect of the collapse of the talks is that, for the time being, “OPEC +” will not increase production for August, depriving the global economy of vital additional supplies as demand recovers quickly from the repercussions of the Corona virus pandemic.


And “Bloomberg” agency reported that the situation is not clear and the group can reactivate the talks at any moment, especially in light of the rise in prices by about 50% this year near $ 80 a barrel, as the organization may feel pressure from importing countries about the high prices.


The failure to reach an agreement is a sign of increasing tensions between members to the point that no compromise was possible, which harms the organization's role as one of the largest institutions responsible for the global oil market, raising the specter of a devastating price war that has caused unprecedented price fluctuations in the year. the past.