Saudi Arabia and the UAE are willing to increase oil production levels in case of a supply crisis during the winter, according to an exclusive report by Reuters.
The two Gulf nations are close allies of the US and members of OPEC+.
According to anonymous sources, Riyadh and Abu Dhabi are ready to provide a “significant increase” in oil extraction, in the event of a worldwide supply crisis during this winter.
On 3 August, OPEC+ increased oil output by a mere 100,000 barrels per day (BPD), in line with their previous agreement.
This is one of the smallest increases since the organization’s quotas were first presented in 1982.
“It is small, yes, but it shows that OPEC+, given the fact that it includes so many countries, like Russia, Iran, and Venezuela with all their grievances, managed to garner consensus and move forward,” the source told Reuters.
Last month, US President Joe Biden failed to secure a significant increase of oil output from his Arab partners during the GCC+3 summit in Jeddah.
Despite Biden’s pleas, Saudi Arabia has maintained they will increase oil production levels at the monthly rate agreed upon by OPEC+ during the height of the coronavirus pandemic.
Days after Biden’s visit, Saudi Energy Minister, Prince Abdulaziz bin Salman, and Russia’s Deputy Prime Minister, Alexander Novak, met on 29 July in Riyadh to discuss energy cooperation between both countries.
The meeting reinforced their commitment to the OPEC+ agreement to preserve a stable oil market and maintain supply and demand.
More recently, the White House approved a multi-billion dollar weapons sales to Saudi Arabia and the UAE. The deal was revealed on the same day the UN announced a two-month extension of the truce in Yemen.
The US is also in discussions to lift a ban on the sale of “offensive weapons” to Riyadh, despite Biden’s claims of supporting an end of the war in Yemen.