Oil falls more than 1% after report of Saudi, UAE agreement on output

Oil rigs

Oil prices fell more than 1% on Wednesday after Reuters reported, citing a source, that Saudi Arabia and the United Arab Emirates (UAE) had reached a compromise over the OPEC+ oil supply deal.

The agreement gives the UAE a higher production baseline, the source said, adding that the UAE's baseline will be 3.65 million barrels per day after the current pact expires in April 2022.

The group is expected to set a date for new meeting soon, Bloomberg reported, citing a source.

The international benchmark Brent crude was trading down 1.1% at $75.66 per barrel, at 2.10 pm Makkah time.

WTI crude fell 1.1% to $74.45 per barrel.

Meanwhile, US crude stockpiles declined by 4.1 million barrels for the week ended July 9, according to American Petroleum Institute data.

The Energy Information Administration’s official report on US crude stockpiles is due later today.