UAE says Russia important to Opec+, asks West to be 'reasonable'

The United Arab Emirates’ energy minister on Monday stressed the importance of an oil production alliance with Russia and called on Western nations to be "reasonable" in their expectations of higher production as Moscow's invasion of Ukraine pushed crude prices higher.

The grouping of the 13 members of the Saudi-led Organization of the Petroleum Exporting Countries (OPEC) and their 10 allies, including Russia, which make up OPEC+, was an "alliance to stay".

"We always believe that whatever we do as countries, when it comes to production and this work, it needs always to stay out of politics," said UAE's Energy Minister Suhail al-Mazrouei during an energy forum in Dubai.

The minister said Russia, which produces 10 million barrels of oil a day, was an important member of the global OPEC+ energy alliance.

“And leaving the politics aside, that volume is needed today,” Suhail al-Mazrouei said. “Unless someone is willing to come and bring 10 million barrels, we don’t see that someone can substitute Russia.”

Led by Saudi Arabia and Russia, the alliance has the capacity to increase oil output and bring down crude prices that have soared past $100 a barrel.

The US, Europe and others have been calling on Gulf Arab oil producers to do more to help bring down prices. Britain’s Prime Minister Boris Johnson made a futile visit this month to the UAE and Saudi Arabia to lobby for more output.

However, the OPEC+ group plans to boost production by just 400,000 barrels a day in April, the same pace as in past months. Al-Mazrouei also dismissed notions that the UAE would increase production unilaterally.

“Staying together, staying focused, and not allowing politics to kick in to this organization ... we always believe that whatever we do as countries when it comes to production and to this work, it needs always to stay out of politics,” al-Mazrouei added.

The OPEC+ alliance has stuck with its plan for gradual oil production increases based on a deal struck during the height of the coronavirus pandemic lockdowns when producers made deep cuts to output to make up for plummeting demand for fuel.

Prices have also risen as Saudi Arabia, OPEC’s largest oil producer, faces continued cross-border attacks by neighbouring Yemen’s Houthi rebels who have used drones and missiles to target the kingdom’s oil facilities. Saudi Arabia has said it will not bear any responsibility for any shortage in oil supplies due to the attacks.

"Russia is an important member and, leaving the politics aside, that volume... is needed today, and unless someone is willing to come and bring 10 million barrels, we don't see that... someone can substitute Russia," said Mazrouei.

Despite increased calls to ramp up production to calm the volatile oil market, Mazrouei said it was "difficult", with countries "facing a natural decline reduction" in large part due to shrinking long-term investments in the oil sector.

At the COP26 conference on climate change held last year in Scotland, "all of the producers felt that they are uninvited and unwanted and felt like they are in corner, but now we are on stage and they want us to produce more so we are again superheroes," he said.

"It's not going to work like that."

Mazrouei called for long-term investments in the sector and a more "reasonable" approach to a clean energy transition.

"If Europe needs gas and needs gas quickly... they need to sit with the producers and they need to identify the requirements, and they need to be reasonable and realistic," he said.