OPEC+ has made headway toward a deal on oil-output cuts, the first sign of progress after failed talks earlier this week.

After days of direct negotiations between the group’s heavyweights -- Russia, Saudi Arabia and the United Arab Emirates -- details of any potential compromise still weren’t immediately clear, according to delegates. It was too early to say whether the progress would translate into a final deal, they said, asking not to be named because the talks were private.

The cartel needs to hash out an agreement on supply levels from January. Output was meant to increase next year, but recent talks have focused on retaining current production limits for another three months, although other options were also discussed. That proposal ran into obstacles amid a clash between Saudi Arabia and the UAE.

The Organization of Petroleum Exporting Countries and its allies are due to meet on Thursday, after a two-day delay to give countries more time to reach a consensus.

Russian Stance

Russia has held its own internal talks between the government and oil companies to draw up its position. The country is ready to agree to a gradual tapering of cuts within the first quarter of 2021, said a person familiar with the discussions.

OPEC+ rescued the oil market this year from an unprecedented slump, slashing production as the pandemic crushed demand. While crude has surged in recent weeks, a new wave of virus infections is hitting the global economy. Some members believe demand is still too fragile to absorb additional barrels.

Fractious talks earlier this week raised the specter of the deal falling apart -- that would sink prices and batter an industry that spans from tiny nations like Gabon to corporate giants such as Exxon Mobil Corp.

The intensity of the fight between Saudi Arabia and the UAE took OPEC-watchers by surprise, as the pair have long been staunch allies. But Abu Dhabi has been pursuing a more independent oil policy; it wants to pump more and feels its quota is unfair.

If a deal is eventually crafted, it will be scrutinized for its ability to keep the coalition together and disciplined. Tensions are expected to reemerge next year.