Oil prices rose slightly in cautious trade on Monday after OPEC and its allies failed to reach an agreement over oil production policy.
Brent crude futures for September delivery rose 0.3 percent to $76.42 a barrel, while U.S. crude futures for August settlement were up 0.4 percent at $75.46.
Tensions between Saudi Arabia and the UAE escalated over the weekend after Friday’s meeting ended without a deal on output among the world’s biggest exporters.
While Saudi Arabia and Russia asked producers to increase production in the coming months, the United Arab Emirates stuck to demands for better terms for itself.
The UAE supported easing OPEC+ collective production cuts between August and December, but called the proposal to extend the agreement for the entirety of 2022 without raising its production quota “unfair”.
Negotiations over the dispute are set to resume today, with markets fearing several scenarios.
Analysts say that a failure by the group to raise supply may drive prices even higher and raise concerns over inflation. On the other hand, a breakdown in their unity could result in a free-for-all that crashes crude.