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Updated July 19th, 2021 at 11:50 IST

OPEC allies raise limits for 5 countries to end oil dispute

OPEC member states and allied nations Sunday agreed to eventually raise the production limits imposed on five countries, ending an earlier dispute sparked by the United Arab Emirates that roiled global energy prices.

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OPEC member states and allied nations Sunday agreed to eventually raise the production limits imposed on five countries, ending an earlier dispute sparked by the United Arab Emirates that roiled global energy prices.

The disagreement, sparked by a demand by the UAE to increase its own production, temporarily upended an earlier meeting of the cartel. In a statement Sunday, the cartel announced that Iraq, Kuwait, Russia, Saudi Arabia and the UAE would see their limits rise.

"What bonds us together is way much beyond what you may imagine," Saudi Energy Minister Prince Abdulaziz bin Salman said. "We differ here and there but we bond."

Prince Abdulaziz declined to elaborate on how they came to that consensus, saying it would see the cartel "lose our advantage of being mysterious and clever." But he clearly bristled at earlier reports on the dispute between Saudi Arabia, long the heavyweight of the Vienna-based cartel, and the UAE.

Prince Abdulaziz deferred at the beginning of a news conference afterward to al-Mazrouei in a sign of respect.

"The UAE is committed to this group and will always work with it and within this group to do our best to achieve the market balance and help everyone," al-Mazrouei said. He praised the deal as a "full agreement" among all the parties.

Outside of OPEC, however, tensions still remain between the neighboring nations. The UAE largely has withdrawn from the Saudi-led war in Yemen, while also diplomatically recognizing Israel.

Saudi Arabia also has opened its doors to Qatar again after a yearslong boycott, though relations remain icy between Abu Dhabi and Doha. Saudi Arabia also has aggressively sought international business headquarters — something that could affect the UAE's business hub Dubai.

Abu Dhabi's powerful Crown Prince Mohammed bin Zayed, the country's de facto ruler, and Saudi Crown Prince Mohammed bin Salman have been close though over the years. The two leaders likely will meet Monday in Saudi Arabia.

 

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Published July 19th, 2021 at 11:50 IST

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