The UAE supports excessive oil production, and the international oil price collapses. At present, Saudi Arabia and the United Arab Emirates are two major oil producers, and they have sufficient spare capacity-the ability to increase the output of millions of barrels of oil at any time. The UAE supports excessive oil production, and the international oil price collapses.
The UAE supports excessive oil production, and the international oil price collapses 1. In a statement sent to British and American media on Wednesday, Yousuf Al Otaiba, UAE ambassador to the United States, said that the UAE supports increasing oil production and will encourage the Organization of Petroleum Exporting Countries to consider increasing production more quickly. This news accelerated the decline of international oil prices and expanded the gains of US stocks.
The UAE and Iraq are not opposed to excessive production increase. Oil distribution diving 1 1 US dollar, US oil may be the worst one-day performance since the outbreak.
The statement of the UAE ambassador mentioned that the UAE has been a reliable and responsible energy supplier in the global market for more than 50 years, and believed that the stability of the energy market is of vital importance to the global economy.
According to the analysis, the UAE is the first member of the Organization of Petroleum Exporting Countries to support excessive production increase since the outbreak of the Russian-Ukrainian conflict. It is reported that the UAE has not consulted with OPEC+other member countries on this decision. Saudi Arabia, a traditional ally of the United Arab Emirates, has always opposed excessive production increase and temporarily declined to comment.
OPEC+Alliance is not monolithic, especially the dramatic turn of decision-making in oil production in the United Arab Emirates, an important member country, which has expanded the rapid decline of international oil prices.
Earlier, Iraq, the third largest oil producer of the Organization of Petroleum Exporting Countries, also said that if OPEC+made a request, Iraq might follow up with excessive production increase. The UAE originally refused to answer Biden's call this week.
ScottModell, managing director of RapidEnergyGroup, said that the UAE "is saying what Washington wants to hear, but the final decision on March 3 1 day still depends on Riyadh and Moscow. If the UAE accelerates production alone, the unity of OPEC+will be shaken, and Abu Dhabi may not be willing to pay for it. "
BobYawger, head of Mizuho Energy Futures, said, "Don't take it seriously. They may soon or even immediately increase the supply of crude oil to the market by about 800,000 barrels per day, which is equivalent to replacing one-seventh of Russia's supply. "
The UAE supports the excessive growth of oil production and the collapse of international oil prices. On Wednesday (March 10), Atiba, UAE's ambassador to the United States, said in a statement to the media that "the UAE is in favor of increasing oil production and will encourage colleagues in the Organization of Petroleum Exporting Countries to consider taking the same measures."
Since then, the UAE has become the first member of the Organization of Petroleum Exporting Countries to call for an increase in production after the escalation of the situation in Russia and Ukraine. Attiba said that since the conflict between Russia and Ukraine has pushed the international crude oil price to the highest level in the past decade, the UAE will encourage other member countries to improve their oil production level.
Attiba said: "For more than 50 years, the UAE has been a reliable and responsible energy supplier in the global market, and believes that the stability of the energy market is crucial to the global economy."
Earlier, it was reported that the White House had tried to arrange for US President Biden to hold telephone talks with Saudi Arabia and the United Arab Emirates, but failed. At present, the United States is trying to win the support of the international community, especially the oil-producing countries, in an attempt to curb the soaring oil prices. As of press time, Brent crude oil, as an international benchmark, is now quoted at about 1 12 USD/barrel.
Last week, Attiba rarely acknowledged the tension in the partnership between the United Arab Emirates and the United States. The report pointed out that in view of the fact that the United States has reduced its security commitment to its Middle East partners, the UAE is uneasy, so it has strengthened cooperation with Russia and other countries.
The United Arab Emirates and other Gulf countries (including Saudi Arabia) have always relied on the US military umbrella, and they are worried that the Biden administration will weaken its security commitment to the region. This concern has been particularly evident since the United States withdrew its troops from Afghanistan. Therefore, in recent weeks, the Saudi Crown Prince rejected the request of the United States to speak with Biden.
Saudi Arabia and the United Arab Emirates are two rare major oil producers with sufficient spare capacity-capable of increasing the output of millions of barrels of oil at any time. When gasoline prices in the United States hit a record high, if this huge amount of idle capacity can be put into the market, it may help stabilize oil prices.
The UAE supports excessive oil production, and the international oil price collapses. The United Arab Emirates said it would call on OPEC+member countries to speed up oil production. This dramatic reversal may put the UAE in opposition to other OPEC+oil producers.
"We are in favor of increasing production and will encourage the Organization of Petroleum Exporting Countries to consider increasing production," the UAE ambassador to the United States said in a statement on Wednesday.
According to a person familiar with the matter, the UAE did not consult other OPEC+members before commenting. There are preliminary indications that this proposal will be resisted within OPEC+,and the Iraqi oil minister also said that the current oil production speed is enough.
The Saudi Ministry of Energy has not yet responded. But the UAE's statement seems likely to trigger tensions between the two Gulf countries, which had a fierce struggle last year.
When the price of crude oil fell, US Secretary of State Blinken welcomed the UAE's decision, saying that supporting production increase "is a key link to stabilize the global energy market. Ensuring an adequate global energy supply is crucial. "
Reluctant OPEC+
So far, OPEC+has rejected calls from the White House and other consumer countries to increase production. They believe that the recent surge of Brent oil price to nearly $ 140 is mainly driven by the geopolitical situation, not the real supply shortage.
Iraqi Oil Minister ihsan Abdel-Jabbar Ismail insisted on this position on Wednesday, saying there was no need to change the plan.
He said, "We believe that the existing production increase plan of OPEC+can meet the demand, and the extra oil released may damage the market. "
At the latest meeting, OPEC+decided to stick to its slow production increase plan after only 13 minutes of discussion, and made no mention of the conflict between Russia and Ukraine, the main cause of high oil prices. The next meeting of OPEC+will be held on March 3 1.
Any proposal to increase production, especially those that are thought to help the west get rid of its dependence on Russian crude oil, may lead to discord within OPEC+. In a telephone conversation with Saudi Crown Prince mohamed ben salman last week, Russian President Vladimir Putin condemned all actions aimed at "politicizing global energy supply".
Scott Mo Deer, managing director of Fast Energy Group, said that the UAE "is saying what Washington wants to hear, but the final decision on March 3 1 day still depends on Riyadh and Moscow. If the UAE accelerates production alone, the unity of OPEC+will be shaken, and Abu Dhabi may not be willing to pay the price. "