What UAE, Saudi Arabia told Macron on oil pricing

• French President Emmanuel Macron said Saudi Arabia and the United Arab Emirates can scarcely increase oil production, citing the UAE’s president.
• The Brent oil price increased by 1.7% to surpass $115 per barrel as the West wants to reduce Russian oil imports to punish Moscow.
• Saudi Arabia currently produces 10.5 million bpd and has a nominal capacity of 12.0 million-12.5 million bpd, allowing it to increase production by 2 million barrels per day.

Saudi Arabia and the United Arab Emirates, two major OPEC oil producers, can scarcely increase oil production, French President Emmanuel Macron said on Monday, citing the UAE’s president.

People think that Saudi Arabia and the UAE are the only two Organization of Petroleum Exporting Countries (OPEC) members with spare capacity to increase international deliveries and lower prices.

He was overheard telling U.S. President Joe Biden on the sidelines of the G7 conference, using an abbreviation for UAE leader Sheikh Mohammed bin Zayed al-Nahyan, “I had a name with MbZ.” “He advised me on two issues. I am at most, most (manufacturing capability). That is what he claims.“

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“After which he mentioned (the) Saudis can enhance by 150 (1000’s barrels per day). Possibly just a little bit extra, however, they do not have big capacities earlier than six months’ time, “Macron mentioned.

The UAE’s top power official confirmed Macron’s statement to the country’s public news agency.

“In mild of current media experiences, I wish to make clear that the UAE is producing close to our most manufacturing capability based mostly on its present OPEC+ manufacturing baseline,” said Energy Minister Suhail bin Al Mazrouei.

In recent months, global oil prices have risen significantly due to a lack of supply and a resurgence in demand following the worst of the coronavirus outbreak. Since Moscow’s invasion of Ukraine in late February, costs have climbed further.

On Monday, crude prices increased after the international news agency reported Macron’s response.

The Brent oil price increased by 1.7% to surpass $115 per barrel as the West wants to reduce Russian oil imports to punish Moscow.

Additionally, Prime Minister Modi and French President Emmanuel Macron exchange a warm embrace at the G7; the two leaders’ bromance is on full display.

Saudi Arabia currently produces 10.5 million bpd and has a nominal capacity of 12.0 million-12.5 million bpd, allowing it to increase production by 2 million barrels per day.

The UAE currently produces approximately 3 million barrels per day, has a capacity of 3.4 million, and is working to increase production to 4 million barrels per day.

Prior to the Ukraine conflict, Europe was importing up to 2 million barrels per day (bpd) of crude oil and a few million barrels per day (bpd) of refined goods from Moscow. Europe is looking for ways to replace these imports.

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