On the 6th (local time), CNBC reported on the 6th (local time) that a senior UAE official said, “I have no intention of withdrawing at this time,” regarding the news that the United Arab Emirates (UAE) is considering leaving the Organization of Petroleum Exporting Countries (OPEC).
Two senior officials familiar with the matter reportedly spoke on condition of anonymity. UAE Oil Ministry and UAE state-run oil company ADNOC did not return CNBC’s request for comment.
On the 3rd, the Wall Street Journal (WSJ) reported that the relationship between Saudi Arabia and the UAE, an oil-rich Middle East country, has recently deteriorated, and that the UAE is considering leaving OPEC.
The news comes at a time when oil demand is expected to increase due to China’s reopening. Ecuador and Qatar have left OPEC.
Earlier, Saudi Arabia opposed the plan to significantly lower production of OPEC+ and OPEC+, a consultative body of OPEC and non-OPEC oil producing countries, in response to the COVID-19 demand shock, citing conditions to raise crude oil production standards.
The WSJ reported that although the UAE has been discussing withdrawal from OPEC for years, the recent conflict with Saudi Arabia has ignited discussions on withdrawal again.
According to the WSJ, the Saudi Crown Prince did not attend the Middle Eastern country summit in the UAE in January. A month ago, UAE’s top leaders were absent from the China-Arab summit in Saudi Arabia.
In response, the WSJ quoted sources as saying that it intentionally avoided the event, adding, “The cracks are growing among U.S. security partners who have been in line with Middle East foreign policy for years.”
