Getty ImagesThe collapse of talks in between OPEC and its allies highlights the threats of the groups unity breaking down and renews issues about a possible oversupply of oil, a commodity strategist informed CNBC. The energy alliance, referred to as OPEC+, was set to resume talks Monday, however discussions have actually been cancelled indefinitely. That comes after the group two times stopped working to reach an essential deal on their oil output policy last week.The group had actually looked for to increase supply by 400,000 barrels each day from August to December 2021 and proposed extending the duration of cuts till the end of 2022. Last year, to cope with lower need as Covid hit, OPEC+ agreed to suppress output by almost 10 million barrels daily from May 2020 to the end of April 2022. The United Arab Emirates had actually suggested that, while it was supportive of the proposal to increase supply, it challenged the regards to the extension, which it stated should be conditional on increasing its so-called baseline, which identifies just how much oil a nation is permitted to pump. ” I certainly believe there are some risks that the marketplace might be actually sort of marking down at the moment which is a breakdown of that unity,” Daniel Hynes, senior commodity strategist at ANZ, informed CNBC on Tuesday.” That has been I believe without a doubt the most significant benefit of this alliance over the previous 18 months … the photo that it provides to the market around a coordinated and extremely certified contract which hasnt truly seen any producers broaden outside of that,” he added.But now the risks are increasing from that dispute surrounding the baseline number, which production cuts or increases are determined versus. The UAE now wants that standard to be increased so it can produce more.It has argued that it was not alone, as Azerbaijan, Kuwait, Kazakhstan and Nigeria also asked for and got brand-new standards approved because the offer started last year, Reuters reported, citing an OPEC+ source.Hynes stated that the UAE now wanting that “side arrangement” to increase their output is representing “a risk now to that unity, to that front.”” I think that brings risks to oversupply in specific over the medium term,” he said.Hynes doesnt rule out weaker prices ahead, but stated he does not think there will be a rate war.Stock choices and investing patterns from CNBC Pro:” I think that would obviously be at danger if we started to see producers actually push their own program and in a sense, go beyond that supply arrangement,” he told CNBC. ” But you understand its everything about understanding and I think if the marketplace does perceive that they will not stick to those present quotas, then plainly, theyre going to assume the worst which would see weak oil costs ultimately,” he added.Oil rates had surged to their greatest levels in nearly 3 years on Monday, after the talks were delayed indefinitely. On Tuesday early morning during Asia hours, prices rose further. U.S. crude was at $76.63 per barrel and Brent was at $77.45 per barrel..