It is rare for spats about oil supply to break out between Saudi Arabia and the United Arab Emirates (UAE)
for spats about oil supply to break out between Saudi Arabia and the United Arab Emirates . The countries’ views on output usually align. Traders and analysts regard them, along with Kuwait, as the core of the Organisation of the Petroleum Exporting Countries . So eyebrows were raised in early July when Suhail Al Mazrouei, the’s quotas were “totally unfair”.
What, then, to expect from the cartel and its allies? There are three scenarios. One is that countries start producing whatever they want, a price war ensues, and oil prices tumble. Analysts reckon that this is the least likely outcome. Energy ministers still bear the scars of the ill-timed price war of March 2020, when Russia and Saudi Arabia failed to agree on production cuts. The market was flooded with oil just before demand suffered its covid-induced collapse.