 |
| UAE, keen to use increased oil production to fund future diversification, has refused to agree to a Saudi-led call to extend Opec’s April 2020 supply deal, throwing the future of the cartel into question © FT montage; Bloomberg |
So sour are Saudi-Emirati relations that neither side could agree on how Monday’s private discussions concluded between Opec members and allies.
People close to the United Arab Emirates said a formal meeting of oil ministers had been postponed. Their Saudi Arabian counterparts argued it had been cancelled and blamed the UAE for torpedoing a deal to raise output at a time when resurgent demand has already pushed up crude prices by 50 per cent this year.
Brent, the international benchmark, reached a three-year high on Tuesday as the disagreement between Saudi Arabia, Opec’s de facto leader, and the UAE, a close, previously co-operative partner, triggered a briefing war between the two camps.
The clash has opened a rift at the heart of Opec that threatens the ability of the cartel — and its partners in the Opec+ alliance — to deliver oil market stability and could yet see the UAE, a member since 1967, leave the group.
No comments:
Post a Comment