UAE Quitting OPEC?
In the spring, when it was apparent that something had to be done, OPEC and the OPEC+ countries consented to implementing production cuts. And Russia and OPEC managed to set aside the price war they had begun in consideration of the global good. It was agreed way back then that the OPEC+ countries would reduce their production by roughly 10 million barrels per day (bpd). Russia agreed to cut its crude oil production by 2 million bpd, or 19% of what their production levels were in February of this year.
Compliance has not been 100%. Some countries, particularly Iraq, had not been cutting as they should have. To keep production near the promised levels, Saudi Arabia had been cutting their production even more. That seems to be at an end. And every country is now going to have to adhere to their designated production levels.
UAE, the first domino to fall away?
The United Arab Emirates (UAE) is rumored to be considering leaving OPEC. Nothing official has been announced, but there are rumblings behind the scenes. Some of the contention seems to have to do with oil production cut discrepancies among the OPEC and OPEC+ countries.