UAE rejects OPEC plan, allies to achieve agreement | Business and Economic Affairs

The United Arab Emirates has ignored OPEC’s plans for oil companies and their allies to ratify an international agreement to reduce oil prices by April 2022, a statement that has yet to reveal the country’s frustration with the group.

The Emirati Ministry of Energy has called for an extension of the 2022 annual agreement without raising its share of “unfair practices in the UAE,” according to state news agency WAM.

One of the biggest producers in the group, the UAE wants to increase its output – setting up a rivalry with ally and OPEC heavyweight Saudi Arabia, which has sparked an interest in what they are making.

Discussions at the video conference took place on Friday between 13 OPEC members eligible, followed by a professional meeting and discussions between 23 OPEC Plus members.

But the OPEC Plus coalition of members led by Saudi Arabia and non-members, the largest of which is Russia, failed to reach an agreement on oil production. Discussions in the debate should resume on Monday.

The UAE said it had supported summer expansion plans, believing the market was “in dire need of more production”.

The country will move on to all the negotiations on the agreement at the next summit and called for changes to be made that reflect “what reflects our production here”.

Later on Sunday, Saudi Arabia’s Food Minister said the agreement, which is due to end in April 2022, should continue for a long time, Asharq television reported.

Asharq also said the prince needed to step up its efforts to meet the oil shortages in the summer.

Iraq’s oil minister Ihsan Abdul Jabbar also backed OPEC Plus’s proposal to ratify the deal by a reduction until December 2022, adding that he expects oil prices to be $ 70 a barrel or more.

Iraq also agreed with the idea that the group should increase its output by 400,000 barrels a day from August.

Speaking at a press conference in Baghdad on Sunday, he said Iraqi oil prices should fall to 2.9 million bpd in July, demonstrating full compliance with the current OPEC agreement. The country sent the invoice at the same price in June, government figures show.

The price of oil is falling

OPEC is facing a crisis over last year’s rise in oil prices as the epidemic halted its movement and energy consumption.

Significant reductions in oil producers have resulted in lower prices than in the past.

Increasing yields now, while vaccination activities undermine economic prospects, could increase spending on countries that have seen their budgets hit hardest by lower prices. But too much spraying in the near future could ruin the increase in electricity prices.

In an interview with CNBC on Sunday, Emirati Energy Minister Suhail al-Mazrouei expressed his concern over Saudi-imposed sanctions.

“Everyone volunteered but, unfortunately, the UAE gave a lot, making up one-third of what we make will not be in two years,” he said.

Saudi Arabia has also significantly reduced its workload and promoted caution, saying the need for oil and economic recovery from the epidemic remains unstable around the world.

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The crisis in the talks came as a result of “UAE raising the final minutes of the Russia-Saudi Arabia agreement already reached”, according to Deutsche Bank experts.

“The UAE, which has increased its capacity since 2018 when the baseline was set, has demanded that its base be raised by 0.6 million barrels per day (bpd) to 3.8 million bpd, thus giving them the opportunity to add one of the existing component to the framework,” said Ole Hansen. from Saxobank.

“Negotiations … will be difficult because OPEC Plus knows that if the UAE is allowed to export, some members may be able to demonstrate,” said Louise Dickson of Rystad.

Saudi Arabia’s food ministry said on Sunday that no country could use a month’s worth of production, Al Arabiya TV said.

Saudi television also quoted Prince Abdulaziz bin Salman as saying that he had no hope or hope for the OPEC Plus talks, which begin on Monday.

OPEC Plus in particular has to choose between approving Abu Dhabi’s demands, or failing to meet an agreement that could lead to more volatile prices. At stake, obviously, is our commitment on the issue, which, if broken, could lead to a price war.