All’s well that ends well — well, in advance of the OPEC+ meeting set to happen on December 2nd, the UAE’s made it clear that it’s fully on board with the cartel’s plans.
The government’s Ministry of Energy reported that the UAE will be fully committed to the recent OPEC+ supply agreement to gradually increase oil production by 400k barrels per day each month, which has been intact since August 2021. The government also mentioned that it has no plans to challenge the agreement during the meeting. It’s a positive development, as the UAE was reported earlier in the year to have been challenging the cartel’s decision to keep supply levels relatively lower. However, it’s unclear if the meeting will see OPEC+ stick to its 400k limit, or not, as rumors have emerged that the group could be looking at increasing oil production.
why it matters
The UAE’s sudden agreement with the existing production plan is probably because of calls from other nations to increase supply. Pressure has emerged from non-OPEC states like the US, UK, and India as they flooded the markets with oil from their reserves just yesterday, to cope with rising oil and gas prices across these nations.