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WSJ Headlines of UAE/Saudi Spat Prompt Oil Price Fall - Further Info


A WSJ story claims that UAE and Saudi have had behind closed-door arguments about a range of topics, including energy, which may lead to the UAE pulling out of OPEC.

  • The UAE is understood to be unhappy with its obligations to pump far less crude than it is capable of producing as part of OPEC commitments.
  • Saudi and the UAE are the only OPEC members with any meaningful spare production capacity.
  • Emirati officials say, the UAE is having an internal debate about leaving OPEC, a decision that would shake the cartel and undermine its power in global oil markets according to the WSJ reports.
  • Oil markets have dropped on the news of potentially higher production volumes flooding the market.
  • See chart for OPEC spare capacity from Bloomberg.
  • *WTI Oil Drops 2.3% to $76.36 After WSJ Reports 'Growing Rift' in OPEC - bbg

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