The UAE's Ministry of Energy and Infrastructure said that its deliberations with OPEC+ regarding changing the baseline of the oil output are still underway.
In a statement on Wednesday, the ministry said that deliberations between the concerned parties are still going on and that an agreement had not been reached yet.
Saudi Arabia and the United Arab Emirates have reached a compromise over OPEC+ policy, Reuters quoted an OPEC+ source as saying earlier Wednesday, in a move that should unlock a deal to supply more crude to a tight oil market and cool soaring prices.
Following the announcement of reaching a deal, the oil prices dropped to $1 per barrel.
The Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, still need to take a final decision on output policy, after talks this month were abandoned.
OPEC+ had agreed record output cuts of almost 10 million barrels per day (bpd) last year to cope with a pandemic-induced slump in demand. The curbs have been gradually relaxed since then and now stand at about 5.8 million bpd.
While Saudi Arabia and the UAE both endorsed raising output immediately, the UAE had opposed extending the existing deal until December 2022 from April 2022 unless it was granted a higher production quota.
The OPEC+ source said Riyadh had agreed to Abu Dhabi’s request to have UAE’s baseline - the level from which cuts under the OPEC+ agreement on supply curbs are calculated - set at 3.65 million bpd from April 2022, up from 3.168 million now.
Giving the UAE a higher production baseline paves the way for extending the overall pact to the end of 2022, the OPEC+ source said.
OPEC+ has yet to take a final decision about the production deal. It was not immediately clear if other countries would also adjust their baselines.
The producers have said they will decide on a new date for the next meeting in due course.
