Sunday, August 1, 2021

Russia in efforts to close rift between Saudi Arabia and UAE over oil output

MOSCOW/LONDON:-Russia is leading efforts to close divisions between Saudi Arabia and the UAE to help strike a deal to raise oil output in coming months, three OPEC+ sources said, with OPEC and its allies yet to set a date for their next oil policy meeting, according to a Reuters report.

Disagreement between the two Gulf OPEC allies was publicly exposed last week, with Riyadh and Abu Dhabi at odds over a proposed deal that would have brought more oil to the market — potentially cooling a rally that has seen prices hit 2-1/2 year highs.

The rare spat forced OPEC, Russia and other producers, a group known as OPEC+, to abandon talks on boosting production after days of negotiations.

The producers have said they will decide on a date for a new meeting in due course, giving no signal whether any compromise might be possible in the coming days.

Behind the scenes

Moscow, which has been pushing to raise output, is now working behind the scenes to bring both Riyadh and Abu Dhabi back to the table to find a path to agreement, the three sources said.

Russia has strong political and economic relations with both Saudi Arabia and the UAE.

“They have time to work out a decision, hopefully we will meet next week and the deal will be clinched,” one of the sources, from the Russian side, said.

The other two sources said that Gulf OPEC member Kuwait has also been working to reconcile the differences between Saudi Arabia and the UAE.

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