Opec’s concerns show that the UAE is ‘changing its muscles’ against Saudi Arabia

A few years ago, the United Arab Emirates and Saudi Arabia went so far as to secretly formulate plans for a political alliance.

Although the union did not take place, the Gulf dictatorship fought terrorists in Yemen and stood united in boycotting Qatar for the sake of Islam.

Over the past few days, however, tensions have broken down as the demands of Riyadh and Abu Dhabi differ on issues ranging from oil production to Yemen, Israeli cooperation, and the solution to the epidemic.

A video conference of Opec members and allies (Opec +) ended recently on Friday after Saudi Arabia and Russia called on manufacturers to increase yields in the coming months. The proposal was made to reduce the rise in oil prices and to increase existing alliances to ensure that the country is stable due to the coronavirus epidemic.

But the UAE refused, digging its heels at his own perceived injustice. Opec members reunite on Monday.

“Greater competition in the Gulf states is taking place in a number of economic areas,” said Karen Young, director of the Middle East Institute. “Saudi Arabia has been increasing its pressure, while the UAE is pushing for its own goals in this volatile market. The giant giants are preparing for the next decade which will be exported to help with their economy.”

The UAE is very committed. We cannot form a new alliance on the same conditions – we have the right to speak up in negotiations.

Some Opec + countries aim to increase production by 400,000 barrels per day from August to December and extend the deal by the last day of April 2022.

The deterioration of Saudi-Emirati relations has been compounded by the UAE’s determination to increase manufacturing capacity to support oil reforms. A power struggle between Opec members now threatens the ability of the cartel to form a temporary bond and establish stability on oil prices.

In a statement issued by the UAE, the UAE Ministry of Energy said it was in favor of rising yields, but called for a start-up operation in the country – where they calculate its decline – which would lead to greater output and enlightenment to ensure justice “for all parties”.

Abu Dhabi’s bravery in Opec comes amid differences over the two Gulf regimes.

With the UAE and Saudi Arabia establishing a “travel hub” over the past decade, “economic competition is growing among Gulf states,” said Marwan Alblooshi, an Emirati PhD representative at the University of Edinburgh.

The UAE in 2019 withdrew most of its troops from Yemen, leaving Saudi Arabia alone in its fight against Houthi-backed Houthi terrorists. The separatist Southern Allies allied with the UAE and then clashed with Saudi-backed Yemeni troops.

As the UAE accepts Saudi-led efforts to end trade and transport in Qatar, Abu Dhabi is fearful of a reunion with Doha. Similarly, the embrace of the UAE and Israel for reconciliation last year has attracted interest in Saudi Arabia.

Alternative measures of the epidemic have also devastated both countries. Riyadh since Sunday has decided to ban travel to and from the UAE, where Delta’s diversity comprises one-third of new cases. Saudi Arabia has not approved a vaccine made by China whose UAE relied heavily on its extensive vaccine.

Saudi Arabia’s threat to cut foreign powers on a lucrative government deal if they do not take their headquarters to Riyadh appears to be under attack in Dubai, the commercial capital of the UAE where most of them live.

The Saudis denigrated the negotiations, calling the Specs a “business” and that the coronavirus ban was “security”, not political.

“For the past 40 years the UAE has been following Saudi leadership in Opec,” said Abdulkhaleq Abdulla, a professor of political science at Dubai. “But recently, the UAE has been very hostile to its established position and is now shifting its muscles forward.”

Under the Opec + agreement, the UAE would cut by 18%, compared to the 5% cut by the empire and 5% by Russia. The UAE said it had about 35% of the current portfolio closed, compared to about 22% of the rest of the deal.

The UAE requested that the original documents be reviewed at the next meeting. The request was denied.

“The unfortunate (Opec) cabinet committee has unveiled only one solution, to increase employment unless the agreement continues, which could result in the UAE not being held fairly until December 2022,” the UAE Minister of Energy said. in words.

Amrita Sen in an interview with Energy Aspects said: “The growing disparities in foreign policy, economic and security relations between Riyadh and Abu Dhabi, as well as in the same oil relations, will support Opec’s future negotiations and efforts to secure Opec + cooperation.”

Proponents of her case have been working to make the actual transcript of this statement available online. The departure could allow the UAE to invest in foreign exchange – from oil refineries and petrochemicals to new exchanges and its poor design that requires a chance of volume to be successful.

The departure of the UAE from the cartel could lead to the free production of everything that could undermine Opec +’s goal, energy analysts say.

“The UAE is very committed,” Suhail Al Mazrouei, UAE minister of energy, told CNBC on Sunday. “We cannot form a new alliance on the same conditions – we have the right to discuss this.”