UAE NEWS: The OPEC opposition puts the UAE’s aspirations to the fore

The pursuit of the UAE by petrodollars plays into a wide-ranging shift between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed and Saudi Arabia’s Prince Mohammed bin Salman over who is in charge of the region at the international level.

Just days before a high-stakes meeting of the Petroleum Exporting Countries (OPEC) to fund a coronavirus-damaged oil market, the United Arab Emirates’ (UAE) oil company told the world it planned to spend $ 122 billion to increase productivity.

That set the stage for a conflict of interest in a party meeting this week. Consensus was reached but good plans to increase energy resources could continue to provoke controversy, especially with its largest neighbor Saudi Arabia.

The pursuit of the UAE by petrodollars plays into a wide-ranging shift between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed and Saudi Arabia’s Prince Mohammed bin Salman over who is in charge of the region at the international level.

For years, the two countries have been pushing for an oil and foreign policy, but it is different in recent months. They split in the war in Yemen, and the UAE committed to its landmark agreement with Israel in September. They have their differences over efforts to divide Qatar, and the US agreement to end divisions involving only Saudi Arabia.

It is in this context that the UAE even came to the fore last month to consider a future outside OPEC. And while the agreement reached on Thursday allows for a unity show, it will be reviewed again in January, meaning the game could be repeated in 2021 as the company sets the stage for exit the epidemic.

“The UAE is increasingly determined to act nationally, and when that does not go well with Saudi Arabia it is confident and determined to do it alone,” said Neil Quilliam, a partner in the Middle East and North Africa think tank Chatham House think tank.

The UAE is the third largest oil producer at OPEC and owns about 6% of the world’s polluted oil reserves. At the heart of the UAE’s dispute with the Commonwealth of Independent States is the state-owned production processor Abu Dhabi National Oil Co.

Four years ago, Sheikh Mohammed appointed Sultan Al Jaber to run the company. Al Jaber, who has experience in corporate and government fields and is also a Minister, has since re-established, forging new partnerships and bringing world infrastructure investors to the country for the first time.

The price war in March allowed the market to see Adnoc’s ambitions, when the company said it would release the product into four million barrels a day, much to the surprise of the International Energy Agency, which did not know it had that capacity.

That was the sudden escape of more than a million barrels from last month. Its long-term goal is to increase power to 5 million and establish its crude Morgan as a regional brand. It therefore requires monetization, which is pressured by OPEC agreements.

The latest controversy has focused on plans made in April between OPEC and its allies including Russia to make unprecedented production cuts. It has taken about 10th of global supply in the market as the coronavirus epidemic stifles economic activity and demand. It has helped to put oil markets back on track, in addition to double the price.

But members have begun to feel uncomfortable, and in this case a major dispute arose in the UAE. Some at the Emirates see their current value of 2.6 million barrels a day, or about two-thirds of its capacity, as unfair.

Although the country offers a large share of the volume, some OPEC members may argue that it is not the way the agreement was calculated and the Emiratis agree to the base when they sign. The Saudis have also emitted more than 20% of their energy, and indeed there have always been millions of energy drums for decades. Like rich countries, both are better prepared to take on this rhythm than poorer members like Iraq.

“There are few concerns about Abu Dhabi,” said Iman Nasseri, chief of London’s Middle East at the FGE consulting firm. “They are under pressure to keep production low while developing new sectors and increasing capacity. The problem is how long this will last. ”

Saudi Arabia and the UAE remain close friends. Riyadh’s flag line was unveiled on Wednesday with the colors of the UAE flag to mark the country’s national day.

The relationship, however, was not as friendly as in the early years of Prince Mohammed’s rise to power. Sheikh Mohammed developed a close relationship with a 35-year-old man when the crown prince was a small headquarters in early 2015. At the time, the Emirati could have provided the savvy and clout needed in Washington, while gaining considerable influence in Saudi Arabia.

A recent dispute over oil came to the fore in the summer, when Saudi Oil Minister Prince Abdulaziz bin Salman called on his Emirati counterpart Suhail Al Mazrouei in Riyadh to shut down the public after the UAE exceeded its oil production rate.

The world quickly fell into a trance, and it has always insulted others by failing to show the same discipline. In talks this week, it used the issue of compliance to comply with the opposition and the increase in exit restrictions. Finally, Cartel agreed to increase production slightly in January.

One of the reasons the UAE wants to boost production is to expand its plan to make its Murban crude bankruptcy, drive more liquidity and investment in the emirate financial institution.

While officials at Abu Dhabi National Oil Co have said they could supply enough to fund a new market, the existing OPEC challenges are not helping. That in part drives the desire for more influence — and a better share — within the group.

“The Durban order is not about whether the UAE wants to leave the agreement or OPEC,” said Amrita Sen, founder of consultant Energy Aspects Ltd. eLondon.

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