The UAE disagrees on production levels because under current policy
The UAE is internally discussing its withdrawal from OPEC over disputes with Saudi Arabia, according to a Wall Street Journal report, published last night.
The US newspaper reports that the UAE disagrees on production levels because under current policy they are pumping far less oil than they would like.
In fact, the Emirates clashed with the Saudis last October when OPEC+ (including Russia among others) decided to drastically cut oil production to support prices.
The United Arab Emirates has publicly supported cutting production, but US officials say the Emirates told them privately that they wanted to pump more oil – as Washington had wanted – but clashed to Saudi resistance.
Among other things, the Emirates are “concerned about a Saudi Arabia working against their interests”, according to Dina Esfandiary, senior adviser for the Middle East and North Africa at the International Crisis Group.
According to the publication, the points of confrontation between the UAE and South Arabia are Yemen and the Emirates’ desire to build a military base on an island in the Bab al-Mandeb Strait at the southern end of the sea. Red, what Saudi officials oppose.
It should be noted that after the publication of the WSJ report, oil prices fell and are trading with losses of around 2%.
