ERBIL, Kurdistan Region - The United Arab Emirates (UAE) said it was committed to the monthly production OPEC+ agreement on Wednesday, hours after the country’s ambassador to the US said its favors production increases.
“The UAE is committed to the OPEC+ agreement and its existing monthly production adjustment mechanism,” Suhail al-Mazrouei, the energy minister, said in a tweet.
The minister’s comment came several hours after UAE ambassador to Washington Yousef al-Otaiba said said it would urge fellow OPEC members to increase oil output as prices continue to surge as a result of the war in Ukraine.
“We favor production increases and will be encouraging OPEC to consider higher production levels,” Otaiba said in a statement obtained by AFP.
On Tuesday, US President Joe Biden announced a ban on Russian oil and gas imports. The US has also slammed a series of crippling sanctions that have already taken a significant toll on the Russian economy and Russian citizens, but are yet to impact Russian President Vladimir Putin’s assault on Ukraine.
The United States has urged Gulf states to increase oil production as Brent crude oil prices hit a peak of $139 per barrel on Monday.
Oil prices plunged following the ambassador’s comments, dropping as low as $105.6 at one point, but may rise again given the UAE energy minister’s remark.
The relief on the market was also due to talks taking place between the US and Venezuela, progress being reported with the nuclear talks, and an indication by Iraq on Wednesday that it could increase output.
Gulf states have been treading carefully with regards to Ukraine, seeking to maintain neutrality with Russia, also part of OPEC+, and with which they have an agreement on levels of production.
Gulf countries are acting in coordination with Russia and OPEC to ensure their control over the current market and to avoid a price war, by maintaining current prices at a a sustainable level.
The UAE, which this year took a temporary seat on the UN Security Council, abstained a US resolution condemning the Russian invasion of Ukraine, indicating that it would remain on the sidelines of international condemnation.
