OPEC+ Spat Support Gains

Crude futures continued to extend gains on Tuesday. Supported by reports that the prospective OPEC+ deal struck late last week had crumbled, as the UAE refused to budge on the demand for their production baseline to be revised. The preliminary deal could be revisited at a future meeting, but the group failed to set a date for further negotiations, meaning that the cooperative will revert to the pre-existing deal - and no increase in output has been agreed. There is a chance that the next set of talks could come in time to increase output in August, but the public spat has damaged the groups reputation and if no agreement is reached there is a chance members will take it upon themselves increase their own production quotas.