Moscow: The Kremlin announced on Wednesday that Russia will continue participating in OPEC+ following the United Arab Emirates’ withdrawal from the cartel, while expressing optimism that the oil producers’ group can endure turbulence in the international energy sector, Reuters reported.
On Tuesday, the UAE declared its withdrawal from the Organization of the Petroleum Exporting Countries, a significant jolt to the alliance as the energy crisis fueled by the Iran war has revealed fractures within Gulf countries.
In OPEC+ rankings, the UAE held the position of fourth-largest producer, with Russia in second place after Saudi Arabia.
Peskov: OPEC+ Curbs Market Volatility
Kremlin spokesman Dmitry Peskov emphasized OPEC+’
s key role, especially given ongoing disruptions in worldwide markets.
“This format helps to substantially, let’s say, minimise fluctuations in energy markets and makes it possible to stabilise those markets,” Peskov told a daily conference call with reporters.
Peskov affirmed Russia’s respect for the UAE’s decision, adding hopes that bilateral energy discussions with the Gulf country would persist.
Russia entered OPEC+ in 2016. According to International Energy Agency data, the alliance produced almost half of global oil and oil liquids last year.
Siluanov Flags Surge, Price Fall
Russian Finance Minister Anton Siluanov warned earlier on Wednesday that the UAE’s departure might lead to increased output and softer global oil prices ahead.
“If OPEC countries conduct their policies in an uncoordinated manner (after the UAE’s exit) and produce as much oil as their production capacities allow and as much as they want, prices will go down accordingly,” Siluanov said.
He pointed out that current oil price strength stems from the Strait of Hormuz blockade, noting oversupply concerns would arise only post-reopening.