Saudi Arabia turned to its Gulf ally the United Arab Emirates when it needed help convincing Russia to sign on to deeper oil supply cuts at this month’s OPEC meeting, Reuters informed.
The UAE’s de-facto ruler, Sheikh Mohammed bin Zayed, hosted crucial talks between Saudi Arabia and Russia in Abu Dhabi, where the three nations ironed out what would become one of the deepest supply cuts in a decade, four sources familiar with the negotiations told Reuters.
Details of the negotiations ahead of the official announcement of cuts by OPEC and non-OPEC producers on Dec. 6 have not been previously reported.
The UAE’s role in the talks marks a change from years past and highlights Russia’s rising clout in the region. Since Russia started cooperating with OPEC on supply agreements in 2016, Riyadh and Moscow have led oil supply decisions in advance of OPEC meetings without much involvement from other producers.
This time, Riyadh wanted Abu Dhabi to help add pressure on Moscow to agree to the cuts, two sources said. Russia saw the agreement as a way to strengthen key relationships in the region, Reuters adds.
“The message Russia wanted to send is that it is supporting Saudi Arabia at a crucial moment and that the alliance is solid,” one of the sources said. “The UAE’s role shouldn’t come as a surprise. Russia has very strong ties with the UAE.”
Russia and Saudi Arabia are the world’s top exporters, together accounting for 20 percent of global production. The involvement of the UAE, which produces 3 percent of global oil supply, came after Moscow signaled opposition to extending new supply cuts in advance of the OPEC meetings in Vienna on Dec. 5 and 6, three of the sources said.
Be the first to comment