UAE settles with OPEC, agrees to Saudi output proposal

(Bloomberg) --The United Arab Emirates has resolved its standoff with OPEC+ and reached a compromise deal that will give it a new output quota, said a delegate.

The cartel will set a new date for a meeting soon, the delegate said, asking not to be named because the information was private.

Read more: Oil prices hover near two-year high after OPEC+ resolves standoff

Last week, the Organization of Petroleum Exporting Countries and its allies were forced to abandon a tentative deal to boost oil production because of last minute objections from the UAE. If the compromise is ratified at a new meeting, it could potentially open the way to higher output, although some members have already locked in most of their supply volumes for August.

The UAE has agreed on a new baseline of 3.65 million barrels a day for its production cuts, the delegate said, an increase from about 3.17 million currently. The country will now support a proposal from Saudi Arabia to extend the duration of the OPEC+ cuts agreement to December 2022, the delegate said.