UAE to encourage OPEC to increase oil production: Report

Yousef Al Otaiba, the UAE’s ambassador to Washington, told CNN that the UAE supports “oil production increases and will be encouraging OPEC to consider higher production levels.”

“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,” he said.

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Last Monday, the UAE committed to the same oil output levels as Russia under the OPEC+ agreement. Otaiba’s remarks may indicate a shift in Emirati policy from stabilising oil production to increasing oil production — and so aiding in the reduction of surging energy prices. At the time of writing, the UAE Ministry of Energy and Infrastructure had not issued a statement.

Meanwhile, an Emirati foreign ministry spokeswoman told CNN on Wednesday that the UAE is working with the US to schedule a call between US President Joe Biden and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed.

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Saudi Arabia and the United Arab Emirates are global oil producing behemoths capable of expanding output in order to reduce high energy prices caused by Russia’s invasion of Ukraine.

Despite the price increases, both countries reaffirmed their commitment to the OPEC+ oil output agreement with Russia last week. Both countries have also refrained from overtly condemning Putin’s incursion.

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The Gulf countries are key US friends, and the UAE recently got extra US military defensive support to assist them in dealing with Houthi threats from Yemen. However, the UAE has requested that the US re-designate the Iran-backed militia as a Foreign Terror Organization, something the US has yet to do.

The US-UAE relationship is currently “under a stress test,” according to the Emirati ambassador to the US, who stated at a forum last week.