The oil tensions between Saudi Arabia and the United Arab Emirates are a reminder that competition is just getting started.
The conflict between Saudi Arabia and the United Arab Emirates over oil production early this year drew international attention. Experts believe that the recent tensions indicate that future competition between the two economies is possible.
The coronavirus epidemic wreaked havoc on the oil industry, with lockdowns typically accompanied a drop in oil prices. In the face of the epidemic, the Organization of Petroleum Exporting Countries (OPEC), an alliance of the world’s main oil producers and partners, reduced its oil output last year. However, Saudi Arabia and the United Arab Emirates (UAE) had a public spat last month about how swiftly they should increase oil supply.
Saudi Arabia had backed a proposal for OPEC producers to gradually increase oil supply in the remaining months of the year.
The proposal also said that any remaining cuts will be extended until the end of 2022, rather than the April 2021 deadline.
Saudi Arabia and the United Arab Emirates are said to have agreed to quickly increase oil output.
The UAE, on the other hand, was not totally on board with the idea, since the region intended to achieve a bigger production quota if the deadline was extended till the end of next year.
In mid-July, the highly publicized conflict between the UAE and Saudi Arabia over oil production appeared to be resolved.
According to Reuters, Riyadh agreed to Abu Dhabi’s request to raise the UAE’s baseline to 3.65 million barrels per day (bpd) from 3.168 million starting April 2022.
Despite the fact that Saudi Arabia and the United Arab Emirates are considered allies, the recent oil dispute has not been the only cause of tension between the two countries.
Saudi Arabia and the United Arab Emirates have also fought this year over the UAE’s engagement in Yemen.
In July, pro-government Saudi Arabian critics openly chastised the UAE for supporting the primary separatist organization in southern Yemen, despite Saudi Arabia’s support for the region’s recognized government.
According to Reuters, political writer Suleiman al-Oqeliy, who frequently reflects official Saudi positions, said on Twitter last month: “I believe that Saudi-Emirati ties will continue to be tested if Abu Dhabi does not help in implementing the Riyadh agreement regarding the south Yemen crisis, and keeps obstructing it.”
Saudi Arabia and the United Arab Emirates have been at odds in recent months over “Brinkwire Summary News.”