According to the president of the UAE, two major OPEC oil producers, Saudi Arabia and the United Arab Emirates, they can hardly boost oil output, according to French President Emmanuel Macron on Monday.
Saudi Arabia and the United Arab Emirates (UAE) are seen to be the only two OPEC members with extra capacity to increase global exports and perhaps lower prices.
On the margins of the G7 conference, Macron was heard saying, “I had a call with MbZ,” referring to UAE ruler Sheikh Mohammed bin Zayed al-Nahyan. “I heard from him twice. I’ve reached my peak, my peak (production capacity). He says that to be the case.”
“Then he added that Saudi Arabia may rise by 150. (thousands barrels per day). Perhaps a little bit more, but they won’t have enormous capacity for at least six months, “Obama added.
Macron’s assertion was backed up by the senior energy official of the UAE, according to the national news agency.
Energy Minister Suhail bin Mohammed Al Mazrouei stated, “In light of recent media claims, I would want to clarify that the UAE is generating close to its maximum production potential based on its current OPEC+ production baseline.
Due to an increase in demand during the worst of the coronavirus pandemic and a shortfall of supply, global oil prices have been gradually climbing in recent months. Since Moscow invaded Ukraine in late February, prices have increased much more.
Following Reuters’s reporting of Macron’s remarks, benchmark crude increased on Monday. As the West looks for measures to cut Russian oil imports to punish Moscow, Brent oil prices increased 1.7 percent to above $115 per barrel.
Saudi Arabia is now producing 10.5 million barrels per day (bpd), but its nameplate capacity is between 12.0 million and 12.5, which theoretically should allow them to increase output by 2 million.
The UAE now produces about 3 million barrels per day, has a capacity of 3.4 million, and is striving to increase it to 4 million barrels per day.
Approximately 2 million bpd of Russian oil and 2 million bpd of refined products that Europe was buying from Moscow before to the Ukraine War are being replaced by alternative sources.