Global oil markets are set to “tighten significantly” unless the OPEC+ alliance resolves its standoff and agrees to increase production, the International Energy Agency warned. Deadlocked by a dispute between Saudi Arabia and the United Arab Emirates, OPEC+ is set to keep output levels unchanged next month even as fuel consumption bounces back from the pandemic and summer driving demand peaks. The group’s impasse threatens to inflict a “deepening supply deficit,” with “the potential for high fuel prices to stoke inflation and damage a fragile economic recovery,” the IEA said in its monthly report. Brent crude is trading close to a two-year high above $75 a barrel. The Organization of Petroleum Exporting Countries and its partners had been gradually restoring the vast quantities of oil production they shuttered during the pandemic, but the spat between the two Middle East nations — centered around the output quota of the UAE […]

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