Oil market volatility not linked to OPEC+, says UAE

ABU DHABI, May 10 (Reuters) – Oil market volatility is linked to factors beyond the control of the OPEC+ group of producers, such as moves by some buyers to boycott certain suppliers, the energy minister said on Tuesday. United Arab Emirates, referring to the West. stop Russia.

“The extreme volatility is not due to supply and demand, it is because some do not want to buy certain crudes and it takes time for traders to move from one market to another,” Suhail al-Mazrouei told a conference of service companies. public in the United Arab Emirates. The capital of the Emirates (UAE), Abu Dhabi.

“The idea of ​​trying to boycott certain crude is going to be risky, regardless of the motives behind it.”

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The UAE is a member of OPEC+, made up of the Organization of Petroleum Exporting Countries and allies including Russia.

“We are trying to meet every month just to look at and monitor the market and we are increasing production with what is required,” Mazrouei added.

OPEC+ this month agreed to another modest increase in its monthly oil output target, arguing it cannot be blamed for Russian supply disruptions that have pushed up prices and saying China’s coronavirus lockdowns also threaten prospects. of demand.

Ignoring calls from Western nations to speed up production increases, the group agreed to increase its June production target by 432,000 barrels per day, in line with an existing plan to lift restrictions made in 2020 when the COVID-19 pandemic hit. hit the demand.

Speaking at the same conference, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said it was “mind blowing” that people were focusing on high oil prices and not the rising cost of gasoline or diesel. , for example.

The minister said “it’s such a lazy thing to try to find someone to blame.”

He said the Ukraine crisis was a European-Russian problem, adding that OPEC leaves politics “out of the building.”

Higher oil refining margins, rather than simply the price of crude, are driving up fuel costs for consumers, Mazrouei said.

Oil prices soared last week after the European Commission proposed a gradual embargo on Russian oil. However, approval has been delayed amid requests for exemptions and concessions from Eastern European members. read more

“The political issues that cause chaos are something that is outside of what we discuss,” Mazrouei said. “We are not on anyone’s side.”

Asked about a US bill, dubbed NOPEC, that could expose OPEC members and their partners to antitrust lawsuits for orchestrating supply cuts that push up global crude prices, Mazrouei said: it was not wise to bring up the subject now.

“I’m not worried for one basic reason: there is a debate about NOPEC in the US, we have to wait and see,” he said.

If it becomes law, the US attorney general would gain the ability to sue the oil cartel or its members, such as Saudi Arabia, in federal court.

Other producers such as Russia could also be sued.

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Reporting by Maha El Dahan and Hadeel Al Sayegh Writing by Michael Georgy Editing by Jason Neely and Mark Potter

Our standards: the Thomson Reuters Trust Principles.

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