The United Arab Emirates Energy Minister Suhail al-Mazrouei said that OPEC+ oil cuts was the technically right decision to reduce output and that the unanimous decision was not motivated by ‘politics’.
The issued statement was the huge endorsement for the OPEC+ decision to reduce the oil production when the United States really wanted the Arab countries to pump more oil. The political and economic landscape of the region after the announcement, seems very quite, as if, all is okay in the state of Denmark. But, in fact, every single player has now been looking at each other, in a bid to, move forward unitedly, but at the same time, not to ‘annoy’ the U.S.
UAE on OPEC+ oil cuts
OPEC (The Organization of Petroleum Exporting Countries) and its ally countries, including Russia, make up OPEC+. The oil cartel OPEC and its partners, including Russia, announced a production cut this month. Still, the United Arab Emirates reiterated on Tuesday that the move was not politically motivated against the US.
“We are against the rumors that this is political. … We always meet and discuss the facts and how we can all contribute to taking the right measures to balance the supply and demand,” Suhail al-Mazrouei from the UAE stated at an Abu Dhabi news conference.
The Middle East region has team up to cut the oil production that may receive US sanctions as well, as per the political pundits. The insight and in-depth analysis also highlight the strange fact that Iran is also supporting the Saudi Arab on oil cuts stance.
Regardless of what U.S. says, Al-Mazrouei reiterated recent Opec+ denials of the decision’s political motivation, claiming that since the cut’s announcement, crude oil prices had steadied at levels where they were the same time last year.
“The UAE, as a member of the group and a partner of the Kingdom of Saudi Arabia, affirms the technical nature of the decision and rejects statements that push for its politicization. The Ministry also underscores the need for constructive dialogue that serves the interests of all countries,” the UAE Ministry of Foreign Affairs and International Cooperation’s statement said.
White house message for Saudi Arabia
Well, political pundits also said that the move by Arab countries would be too early to called the New World Order. The threat by US President Joe Biden was eminent as by and large the move ‘supported’ the Russia President Putin amid the Ukraine war. The output cuts announcement, despite the White House asked doubling the per barrel demand, have sparked new debates among the opec and non-opec countries.
Beyond the Cuts
The cartel stated earlier this month that it would reduce its production quota by 2 million barrels per day beginning in November, one month before Europe’s ban on Russian oil was scheduled to fully take effect. This announcement sent the oil markets into chaos.
Prince Khalid bin Salman, the son of King Salman and Saudi Arabia’s defense minister, stated that the decision to lower output by 2 million barrels per day on October 5 was made unanimously and was based on economic considerations despite the short supply of oil.
Opec cuts production 2022
The foreign Ministry of Kuwait backed the Saudi position on the reduction on Tuesday, stating in a statement that the decision was made with “pure economic considerations.”
The real impact on global markets has been projected to be roughly 1 million barrels per day, but supply will still be severely tightened even if several OPEC members are already producing below their quotas.
By reducing output by two million barrels per day starting in November, the 13-nation, Saudi-led OPEC cartel and its ten allies, led by Russia, infuriated Washington and put additional upward pressure on already high petroleum prices. The United States said last week that the cut would increase Russia’s profits overseas and that Saudi Arabia had planned it for political ends. However, Saudi Arabia refuted this. The move sparked rapid criticism from the Joe Biden administration, which had hoped for lower prices before the midterm elections in November, and accusations that Riyadh was giving Moscow economic support that would help finance its war in Ukraine.
The finance minister of Indonesia stated that the US-led proposal to set a price restriction on Russian oil most certainly had an impact on OPEC’s decision to reduce production. She mentioned that Saudi Arabian officials she spoke to were worried that the oil price cap could serve as a model for other commodities and harm Saudi Arabia’s exports in the future.
Russia, Putin and Ukraine War and Inflation
Other Gulf oil producers have also reaffirmed their backing for the OPEC+ decision, highlighting its importance to the global economy. They are all active supporters of the West and keep cordial ties with Moscow. Nobody has openly backed Russia’s invasion of Ukraine.
Since the Ukraine War started this year, the oil prices sky-rocketed. The US and KSA The oil production cut helped