Discussions were complicated by the UAE’s last-minute objection to the Russian-Saudi deal that was reached earlier, which is the extension until the end of 2022
The UAE’s push to increase its basic production line led to the derailment of the meeting of the coalition of oil-producing countries last week, and the failure to reach an agreement, which endangers the process of managing the energy market recovery after the Corona pandemic.
A statement published by the state-run Emirates News Agency said, “Unfortunately, the Ministerial Committee in OPEC Plus offered only one option, which is to increase production, conditional on extending the current agreement to December 2022, which is an unfair agreement for the UAE in terms of the base point of reference for production quotas.”
The statement continued – quoting the Ministry of Energy – that the current agreement continues until April 2022, and the UAE does not mind extending the agreement if necessary, but it requested a review of the base points ratios for the reduction reference to ensure fair quotas for all members upon extension.
On Friday, the talks included a meeting between the 13 OPEC members led by Saudi Arabia, followed by a technical meeting and discussion among the 23 OPEC Plus members. The broader group includes Russia, the world’s second largest oil producer.
Analysts from “Deutsche Bank” said that the discussions were complicated by the UAE’s last minute objection to the Russian-Saudi deal that was reached earlier, which is the extension until the end of 2022, and the UAE insisted on raising the basic production line by 0.6 million barrels per day. to 3.8 million barrels.