Opec and the broader Opec+ alliance have maintained a strong united front since Russia’s 24 February invasion of Ukraine sent oil prices soaring above $100/B. The producer alliance has remained resolute in asserting that the crisis has had no impact on market fundamentals and as such, the gradual unwinding of production cuts by 400,000 b/d each month should continue as planned – despite actual production increases being markedly less (MEES, 11 March).
However, there are now signs of divisions emerging. On 9 March, the UAE’s high-profile ambassador to the US Yousef al-Otaiba released a statement that “we favor production increases and will be encouraging Opec to consider higher production levels.” He added that “The UAE has been a reliable and responsible supplier of energy to global markets for more than 50 years and believes that stability in energy markets is critical to the global economy.” (CONTINUED - 931 WORDS)
