#UAE sows confusion in oil market as it faces lower Russian supply | Reuters

UAE sows confusion in oil market as it faces lower Russian supply | Reuters

Confusing messages from No. 3 OPEC producer the United Arab Emirates about whether it supported higher output or not stoked volatility in the oil market as consuming nations sought extra crude on Thursday to replace dwindling Russian supplies.

The UAE's ambassador to Washington, Yousuf Al Otaiba, said on Wednesday in a statement posted by the embassy on Twitter that Abu Dhabi favoured an increase in oil production and would encourage OPEC to consider higher output.

But a UAE source familiar with the matter told Reuters on Thursday the Gulf state would not act on its own to raise production and remained committed to OPEC+ policy.

OPEC+, comprising the Organization of the Petroleum Exporting Countries, Russia and their allies, has a deal to gradually raise output each month by 400,000 barrels per day. The group has refused act more quickly even as prices have rocketed higher because of Russia's invasion of Ukraine.