July 4, 2022

EXPO Magazine

Complete News World

Oil Rise: Rising competition between the two monarchies behind rising prices

  • Samir Hashmi
  • BBC News Middle East Economic Correspondent

Saudi Crown Prince Mohammed bin Salman and Abu Dhabi Crown Prince Mohammed bin Saeed, Abu Dhabi, United Arab Emirates (November 27, 2019)

debt, Reuters

Photo caption,

Controversy erupts over alliance between Saudi Arabia and Crown Prince of Abu Dhabi

A public dispute between the United Arab Emirates and Saudi Arabia over the allocation of oil production this week led to the abandonment of negotiations between the world’s largest producing nations, leaving energy markets without limits and pushing resource prices to an all-time high.

The 23-nation OPEC +, which includes the Organization of the Petroleum Exporting Countries and its associated producers such as Russia, had to postpone talks indefinitely, raising fears about the group’s stability. Over the past 18 months, countries have managed to tackle the global economic crisis related to the corona virus epidemic.

Last week, when the leaders of the United Arab Emirates (OPEC), Saudi Arabia and Russia rejected production, restrictions on production were to be extended for another eight months.

debt, Reuters

Photo caption,

OPEC and its allies have not yet set a date for the next meeting on oil production allocations

The UAE wanted to reconsider its current fundamentals – the amount of calculated production cuts or increases – in order to gain the freedom to produce more oil. However, Saudi Arabia and Russia opposed it.