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Leonhard Foeger
OPEC logo – archives
A report published by the “Financial Times” newspaper warned that the pushing-to-the-abyss policy between Saudi Arabia and the United Arab Emirates threatens the unity of “OPEC” at a time when oil prices increased.
The newspaper pointed out in its own report that “the UAE’s desire to increase production raises the scenario of its exit from the oil cartel after 54 years of membership.
The report adds: “Relations between the two countries are so strained that neither of them was able to provide a picture of what happened at the meeting of OPEC and its allies. last Monday”.
The report, citing people with close ties to the UAE, confirmed that “the official meeting between oil ministers has been postponed,” but their Saudi counterparts explained that it had been “canceled” and blamed the United Arab Emirates for their inability to increase production at a time when renewed demand for oil has increased by 50%.
Brent crude oil reached levels 3 times higher as a dispute erupted between Saudi Arabia and the United Arab Emirates, but the confrontation opened a rift within OPEC and threatens the capacity of the cartel and of its partners in the “OPEC +” alliance to ensure stability on oil prices, and may have led to the exit of the Emirates, which have been part of it since 1976..
Saudi Arabia and its so-called “OPEC +” ally Russia have proposed to increase production by 400,000 barrels per day on average, and for the period between August and December, but the Saudis have lobbied to extend the supply agreement that had been agreed upon. at the height of the epidemic and the closure that accompanied it in April 2020, and what happens after it.
The UAE said last week that it “supports the plan to increase production, but wants guarantees before any extension process linked to the supply agreement, that is, – say its base production, on which the decision to cut supplies was based, and that they will be lifted in April, which will allow it to produce oil at its maximum capacity.
Source: “Financial Times” + agencies
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