UAE and Saudi Arabia reject Johnson’s request and renew OPEC+ commitment |


Riyadh –

British Prime Minister

Riyadh –

British Prime Minister Boris Johnson’s visit to the Arab Gulf region fell short of its objectives, after the latter sought to “exert pressure” in a bid to secure more oil flows.

Observers said Johnson’s request to increase oil production had already been rejected before the prime minister began his tour, with Gulf countries sticking to the OPEC+ deal and unwilling to discuss the question.

Johnson met the crown princes of Saudi Arabia and the United Arab Emirates on Wednesday in a bid to mitigate soaring fuel prices, as the West grapples with economic headwinds from Russia’s invasion of Israel. Ukraine.

Johnson was seeking greater investment in the UK’s renewable energy transition and ways to get more oil to reduce Britain’s dependence on Russian energy supplies.

His visit was also aimed at pressuring these two major OPEC producers to pump more oil, which would have an immediate impact on Brent crude oil prices which nearly hit $140 a barrel in trade last night. last week. Prices have fallen to around $100 in recent days, largely due to the new pandemic shutdowns in China.

Johnson met with Saudi Crown Prince Mohammed bin Salman and the two agreed to work together to maintain energy stability and the transition to renewable fuels, Johnson’s office said.

Johnson told reporters after the meeting that the two men had a “productive conversation” and agreed on the importance of tackling oil price inflation, but he did not say whether Saudi Arabia was responsive to increased oil production.

“I think there was an understanding of the need to ensure stability in global oil and gas markets and the need to avoid damaging price spikes,” he said.

Earlier on Wednesday, Johnson met with Abu Dhabi Crown Prince Mohammed bin Zayed for similar energy supply talks amid the “chaos unleashed” by Russia’s invasion of Ukraine. He stressed “the importance of working together to improve the stability of the global energy market” and ways to strengthen energy ties, Downing Street said.

Johnson told reporters in Abu Dhabi that Russian President Vladmir Putin’s decision to invade Ukraine was “causing global uncertainty and a spike in the price of oil.”

Because of Europe’s dependence on Russian oil and gas, Putin was “able to blackmail the West into ransoming Western economies”, he said, before declaring: “We need independence “.

Pushing for an immediate release of more oil is a tall order for Abu Dhabi and Riyadh, which benefit greatly from high energy prices that boost their incomes and purchasing power.

Saudi Arabia and the United Arab Emirates have the capacity to pump more oil, but so far have been unwilling to change course from a deal with Russia. The COVID-19 pandemic has dented demand for oil, with Brent Crude prices averaging around $42 a barrel in 2020 before surging to $70 last year following a major deal. oil producers to drastically reduce production.

The agreement, led by Saudi Arabia and Russia, calls for a gradual increase in production levels each month as economies recover, but it does not take into account the impact of the war in Ukraine, launched by Russia three weeks ago.

Last week, the UAE’s energy minister said the country was “committed to the OPEC+ deal and its existing monthly production adjustment mechanism.” His statement followed a contradictory comment from the UAE’s ambassador to Washington, who appeared to suggest the UAE was in favor of releasing more oil to the market.

Western leaders have signaled that today’s wartime energy security requires allied nations to pump more.

The Biden administration dispatched two officials last month to Riyadh to discuss a range of issues, chief among them global energy supplies. In a call with Biden ahead of the visit, King Salman stressed “the importance of keeping the deal” that is in place between OPEC producers and Russia, according to a Saudi reading of the call .

During a visit to Moscow, UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan said on Thursday his country remained keen to cooperate with Russia to improve global energy security.

Russia’s invasion of Ukraine has led to a series of Western sanctions and disrupted global energy markets, putting the spotlight on Gulf energy exporters, such as the United Arab Emirates and Saudi Arabia, as consumers seek supplies to replace Russian oil.

In his televised comments, the minister said the UAE planned to discuss the crises in Ukraine, Syria, Yemen and Iraq during its delegation’s visit to Russia.

Johnson’s visit to the Arabian Gulf region fell short of its objectives, after the latter sought to “exert pressure” in a bid to secure more oil flows.

Observers said Johnson’s request to increase oil production had already been rejected before the prime minister began his tour, with Gulf countries sticking to the OPEC+ deal and unwilling to discuss the question.

Johnson met the crown princes of Saudi Arabia and the United Arab Emirates on Wednesday in a bid to mitigate soaring fuel prices, as the West grapples with economic headwinds from Russia’s invasion of Israel. Ukraine.

Johnson was seeking greater investment in the UK’s renewable energy transition and ways to get more oil to reduce Britain’s dependence on Russian energy supplies.

His visit was also aimed at pressuring these two major OPEC producers to pump more oil, which would have an immediate impact on Brent crude oil prices which nearly hit $140 a barrel in trade last year. last week. Prices have fallen to around $100 in recent days, largely due to the new pandemic shutdowns in China.

Johnson met with Saudi Crown Prince Mohammed bin Salman and the two agreed to work together to maintain energy stability and the transition to renewable fuels, Johnson’s office said.

Johnson told reporters after the meeting that the two men had a “productive conversation” and agreed on the importance of tackling oil price inflation, but he did not say whether Saudi Arabia was responsive to increased oil production.

“I think there was an understanding of the need to ensure stability in global oil and gas markets and the need to avoid damaging price spikes,” he said.

Earlier on Wednesday, Johnson met with Abu Dhabi Crown Prince Mohammed bin Zayed for similar energy supply talks amid the “chaos unleashed” by Russia’s invasion of Ukraine. He stressed “the importance of working together to improve the stability of the global energy market” and ways to strengthen energy ties, Downing Street said.

Johnson told reporters in Abu Dhabi that Russian President Vladmir Putin’s decision to invade Ukraine was “causing global uncertainty and a spike in the price of oil.”

Because of Europe’s dependence on Russian oil and gas, Putin was “able to blackmail the West into ransoming Western economies”, he said, before declaring: “We need independence “.

Pushing for an immediate release of more oil is a tall order for Abu Dhabi and Riyadh, which benefit greatly from high energy prices that boost their incomes and purchasing power.

Saudi Arabia and the United Arab Emirates have the capacity to pump more oil, but so far have been unwilling to change course from a deal with Russia. The COVID-19 pandemic has dented demand for oil, with Brent Crude prices averaging around $42 a barrel in 2020 before surging to $70 last year following a major deal. oil producers to drastically reduce production.

The agreement, led by Saudi Arabia and Russia, calls for a gradual increase in production levels each month as economies recover, but it does not take into account the impact of the war in Ukraine, launched by Russia three weeks ago.

Last week, the UAE’s energy minister said the country was “committed to the OPEC+ deal and its existing monthly production adjustment mechanism.” His statement followed a contradictory comment from the UAE’s ambassador to Washington, who appeared to suggest the UAE was in favor of releasing more oil to the market.

Western leaders have signaled that today’s wartime energy security requires allied nations to pump more.

The Biden administration dispatched two officials last month to Riyadh to discuss a range of issues, chief among them global energy supplies. In a call with Biden ahead of the visit, King Salman stressed “the importance of keeping the deal” that is in place between OPEC producers and Russia, according to a Saudi reading of the call .

During a visit to Moscow, UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan said on Thursday his country remained keen to cooperate with Russia to improve global energy security.

Russia’s invasion of Ukraine has led to a series of Western sanctions and disrupted global energy markets, putting the spotlight on Gulf energy exporters, such as the United Arab Emirates and Saudi Arabia, as consumers seek supplies to replace Russian oil.

In his televised comments, the minister said the UAE planned to discuss the crises in Ukraine, Syria, Yemen and Iraq during its delegation’s visit to Russia.

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