OPEC+ stalled talks might lead to oil price war: IEA

The International Energy Agency (IEA) said on Tuesday that stalled talks between the OPEC+ alliance could deteriorate into a price war as COVID-19 vaccines are sending demand for oil.

"The OPEC+ stalemate means that until a compromise can be reached, production quotas will remain at July's levels. In that case, oil markets will tighten significantly as demand rebounds from last year's COVID-induced plunge," it added in its monthly oil market report.

Talks between the alliance has been stalled due to a dispute betweenSaudi Arabia and the United Arab Emirates last week on boosting oil production.

"Oil markets are likely to remain volatile until there is clarity on OPEC+ production policy. And volatility does not help ensure orderly and secure energy transitions – nor is it in the interest of either producers or consumers," the IEA added.