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Saudi Arabia – Emirates do not retreat to the US: No need to increase oil production

Saudi Arabia and the United Arab Emirates have sent “signals” that the OPEC + cartel will continue to resist US pressure to increase its oil production and move very cautiously in this area.

US President Joe Biden, worried about the seven-year high in gasoline prices, which has significantly pushed up inflation, has called on the bloc of 23 oil-producing countries to open the taps of production so that international crude prices can fall.

OPEC +, led by Saudi Arabia and Russia, is currently increasing its production by 400,000 barrels per day each month.

“The 400,000 continue and we believe that is enough,” the UAE energy minister said in an interview in Abu Dhabi, where he is attending an Adipec oil and gas summit. The panel included his counterparts from Saudi Arabia and India.

The next meeting of OPEC and its partners is scheduled for December 2. Crude prices have risen 60 percent this year to more than $ 80 a barrel, with many energy executives and leaders such as Russia’s Vladimir Putin estimating it could reach as high as $ 100.

Mazrouei said the oil market will switch from a supply deficit to a surplus early next year and that’s one of the main reasons for OPEC+ not to be aggressive with supply.

“What we know and what all the experts in the world believe is that we will have a surplus,” he said. “So we do not need to panic. You need to be calm.”

Saudi Energy Minister Abdulaziz bin Salman followed suit, saying oil and gas markets were relatively calm relative to those that hit record highs last month.

“The oil market is not responsible for energy shortages,” he said in an interview with Adipec, according to Bloomberg. “Compare us to any other energy source. Variability comes from other energy sources.”

Oil reserves began to decline sharply when OPEC + began to cut supply in early 2020, with the onset of the coronavirus crisis. However, starting next month, they will start growing again, said Prince Abdulaziz.

“OPEC + is doing its duty,” he said.

The Omani energy minister agreed that it was not necessary to speed up production, and predicted that at the December meeting, the rate of 400,000 barrels of additional daily production per month would remain stable.

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