February 25, 2024
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The UAE Pledges Its Support for Saudi Arabia’s Decision to Prioritize World’s Peace and Energy Stability

The United Arab Emirates has declared its full support for Saudi Arabia in its quest for global energy stability, security, and world peace. This news follows the bitter lash back by some countries about OPEC+’s decision to cut oil production to two million barrels daily.

Why has the UAE Chosen to Stand by Saudi Arabia

On the 17th of October 2022, the UAE government affirmed its decision to throw its weight behind Saudi Arabia’s efforts to maintain energy stability, security and world peace to reduce energy volatility in the global oil market. The country also cheered on the OPEC+ decision to reduce global oil production. It has also outrightly denied some countries’ accusations that the reductions were to politicize global oil sales.

Both countries believe that stability in global oil markets is important to continue the long-term supply of crude oil. However, the ever-increasing global demands and very little liquidity may be a key hindrance to this goal. Thus, to maintain stability in the oil market, the country has commended the oil production reduction as a much-needed initiative.

Earlier in the year, the President of the UAE, Mohamed bin Zayed, had expressed his wish to ensure energy security and stability in the Middle East. He declared the country’s pledge to consolidate the UAE’s reputation as a reliable energy supplier and to ensure global energy security. These actions are o the end that economic growth and international development are encouraged by the country. It is, therefore, unsurprising to see the country fully behind Saudi Arabia’s efforts and OPEC+’s decision.

Similarly, the UAE Ministry of Foreign Affairs has issued a statement declaring the oil reduction as a collective vote-based decision from the oil-producing countries. The country affirmed that as a member of the OPEC and a partner of Saudi Arabia, the decision was purely technical, and no lobbying or politicization was involved.

Additionally, it was easy to foresee the cut in oil production as several OPEC+ members were already producing below the allotted quotas, as low as a million barrels daily. However, this new quota will bring about some form of global cohesiveness in oil production, which will offset the current volatility in the oil market. One must commend the UAE’s desire to put aside its potentially increasing profits in oil production to reduce its production and support other countries in the same way for energy stability, peace, and security. While a few countries may be unable to see the accompanying benefits of this decision, it will certainly become clearer in the coming months.

Conclusion

The popular saying ‘you cannot make an omelette without breaking a few eggs’ proves very true in the oil production reduction by OPEC+ members. The deduction is a necessary evil to stabilize the current and future markets. The UAE and other brave countries have decided to chew the bitter pill by doing what needs to be done. One must surely appreciate their efforts to sacrifice for the world’s sake.

Last Updated on 4 weeks by newseditor

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