Bloomberg) — The United Arab Emirates has reached a preliminary deal to resolve the its standoff with OPEC+, giving the Gulf state a higher output quota, said a delegate.

The proposal would need to be approved by all OPEC+ members before it can take effect and a new date for a meeting will be set soon, the delegate said, asking not to be named because the information was private.

Oil fluctuated on the news, with Brent crude down 0.3% at $76.25 a barrel as of 12:53 p.m. in London.

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 will set a new baseline of 3.65 million barrels a day for its production cuts, the delegate said. That would be an increase from about 3.17 million currently — a level the country has argued is unfairly low.

The emirates will now support a proposal from Saudi Arabia to extend the duration of the OPEC+ cuts agreement to December 2022, the delegate said.

© 2021 Bloomberg L.P.

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