Blinken welcomes UAE support for increasing oil production

Secretary of State Antony Blinken on Wednesday welcomed statements from the United Arab Emirates (UAE) that the country supports increasing oil production to offset rising prices as the U.S. and its allies seek to alienate Russia from the oil market over its invasion of Ukraine.

Blinken called it “important” for OPEC+, a grouping of oil-exporting nations, to increase oil production to “stabilize global energy markets, to make sure that there remains an abundant supply of energy around the world.” 

UAE Ambassador to the U.S. Yousef Al Otaiba reportedly said shortly before Blinken’s remarks that Abu Dhabi favors “production increases and will be encouraging OPEC to consider higher production levels,” according to the Financial Times.

The remarks from the Emirati envoy follow those made by Blinken on Tuesday speaking with his counterpart in the UAE, Sheikh Mohammed bin Zayed al-Nahyan, with the secretary saying they had “spent a fair bit of time on the phone.”  

A readout of the call provided by the State Department said that Blinken “reiterated the value of close coordination on Ukraine and the importance of building a strong international response to support Ukrainian democracy and sovereignty following Russia’s premeditated, unprovoked and unlawful invasion. The Secretary also underscored the U.S. commitment to help the UAE bolster its strong defensive capabilities against threats from Yemen and elsewhere in the region.”

The U.S., which is not part of OPEC+, has for months pushed for a faster rate of supply increases to combat high gasoline prices, though the countries had previously not looked into the issue. 

During the pandemic, OPEC+ cut supply in response to decreased demand for oil as fewer people were traveling and commuting. As economies reopened and demand bounced back, the group has stuck to steady increases of 400,000 barrels per day.

In recent weeks, oil prices have risen even higher amid Russia’s invasion of Ukraine, putting an additional strain on consumers in the U.S. and worldwide. 

The news also comes as many countries have sought to cut their use of Russian oil — and some buyers have resisted purchasing it — in light of the invasion. 

President Biden on Tuesday signed an executive order barring U.S. imports of Russian oil and gas in conjunction with moves by the United Kingdom and European Union to try to reduce their imports of energy controlled by the Kremlin. 

To make up for the shortfall in the market, the Biden administration is looking to increase supply globally, with OPEC+ being an important arbiter, and reportedly encouraging other countries such as Venezuela to supply more of its oil in response.