03.03.2023
The UAE denied media reports regarding the Abu Dhabi government’s study of exiting OPEC, which led to financial losses. An American newspaper had confirmed the existence of a Saudi-Emirati dispute that led to a estrangement in the political relations between the two countries.
Brent crude prices, the global oil benchmark, pared their early losses in London trading today, Friday, after Emirati officials denied what was published by the American Wall Street Journal about the existence of a discussion within the UAE government regarding the possibility of leaving the Organization of the Petroleum Exporting Countries. (OPEC)
Earlier on Friday, the Wall Street Journal reported that the UAE is witnessing an internal debate about exiting the Organization of the Petroleum Exporting Countries. According to the Wall Street Journal, the growing dispute betweenThe United Arab Emirates And the Kingdom of Saudi Arabia may mean that the UAE is considering the possibility of leaving the organization, a step that will make it free to increase its oil production rates and not be bound by OPEC decisions and production quotas for member states.
According to the American newspaper, The war in YemenIt is among the problems that surface between Riyadh and Abu Dhabi, as the latter fears being marginalized in any agreement that Saudi Arabia may conclude with the Houthis, which could threaten the UAE’s maritime navigation. The newspaper quoted Emirati officials as saying that Sheikh Tahnoun came to Saudi Arabia several times, trying to meet Saudi Prince Mohammed bin Salman, but to no avail, which may reflect the depth of the crisis.
Oil prices fell by about $2 a barrel after the report published by the Wall Street Journal, at a time when analysts indicated concerns that this may affect the so-called OPEC + agreement, which OPEC concluded with Russia and other non-member countries with the aim of reducing production ..
Bloomberg stated that the UAE’s exit from OPEC could have political repercussions not only with Saudi Arabia, one of the UAE’s largest trading partners, but with other Gulf allies such as Kuwait and Iraq, adding that Emirati officials have been thinking for years about the best alliances to achieve their long-term interests. , as the UAE seeks to make the most of increasing its production capabilities in the field of crude oil.
In the same context, two informed sources denied to Reuters media reports regarding the UAE’s study of exiting OPEC, saying that it was “far from the truth.” “This is definitely not on the table,” said another source, asked by Reuters about the Wall Street Journal report.
The UAE Energy Minister, Suhail Al Mazrouei, said last year that his country’s plans to increase its production capacity do not mean that it will leave OPEC.
A.A.J/F.I (Reuters, AFP, DPA)
Evening DW |
05.07.2021
