UAE not opposing OPEC+ output hike but wants its own production to be higher – Reuters
As the talks between the OPEC and its allies (OPEC+) are likely to resume Friday at 1300 GMT, Reuters reported, citing OPEC+ sources, saying that “the UAE does not oppose the principle of hiking output by the group but it wants its own production to be higher.”
Additional takeaways
“Its baseline - the level from which any cuts are calculated - was originally set too low, something it was ready to tolerate if the deal ended in April.”
“The UAE wants to have its baseline production set at 3.84 million bpd versus 3.168 million bpd now.”
“If its baseline is changed, it could mean adding more oil to the market than planned or other producers would have to accept a lower increase.”
“The UAE has ambitious production plans, investing billions of dollars to boost capacity. The OPEC+ pact has left about 30% of UAE capacity idle.”
Related reads
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
