The National - News

UAE says it is committed to Opec+ and will act collective­ly


The UAE has “no prior” stance ahead of a coming meeting of Opec+ producers amid measures taken by the US and key oil importers to tame prices.

“The energy ministry confirms that the United Arab Emirates is fully committed to the co-operation agreement with Opec+ and that there is no prior stance on the upcoming meeting,” the Ministry of Energy and Infrastruc­ture said in a statement carried by state news agency Wam.

The UAE “remains fully committed to the Declaratio­n of Co-operation (Opec+) and reiterates that any decisions will be taken collective­ly,” it said.

Kuwait’s oil minister Mohammed Al Faris also reaffirmed his country’s support for the Opec+ agreement, state news agency Kuna reported late on Wednesday.

Iraq, Opec’s second biggest producer, also backs the group’s continuing plan to raise output by 400,000 barrels per day each month since August, its oil ministry said on Thursday.

On Tuesday, the White House announced that the US and oil-importing countries including India, the UK, Japan, and South Korea would release a total of 80 million barrels of crude on to the market.

The move follows a sharp rise in oil prices this year. They have rallied about 60 per cent since the start of the year and have been hovering above $80 a barrel.

Brent rose 3.5 per cent following the announceme­nt of the strategic petroleum reserves’ release, while West Texas Intermedia­te, which tracks US crude grades, jumped 2.65 per cent.

On Thursday, Brent remained flat at $82.25 per barrel at 11.17am UAE time. WTI was down 0.18 per cent at $78.25 per barrel.

Market observers are waiting to see how Opec+, the group of producers led by Saudi Arabia and Russia, will respond to the unpreceden­ted release from the US and its key crude importers.

The group will meet next Thursday to evaluate the last increment of their plan to return 2 million barrels per day of supply to the markets by the end of the year, reversing historic cuts to offset low demand during the pandemic.

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