A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024. REUTERS
MOSCOW, April 30 (Reuters) – Russia’s Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ group of leading oil producers would continue working together despite the departure of the United Arab Emirates, Russian news agencies reported.
According to the reports, Novak said he did not expect an oil price war to emerge following the UAE’s exit given a global oil deficit.
The UAE said on Tuesday it was quitting OPEC, dealing a blow to the oil producers’ group as an unprecedented energy crisis triggered by the Iran war exposes discord among Gulf nations.
The UAE was the fourth-largest producer in OPEC+, which comprises OPEC and its allies, while Russia is second, behind Saudi Arabia.
“In the current situation, it is hard to talk about a price war when there is a shortage in the market. What we are seeing instead is the deepest crisis in the industry,” Novak was quoted as saying by Interfax news agency.
“Large volumes of oil are not reaching the market today, while demand significantly exceeds supply. This has created an imbalance due to serious logistical disruptions, including the situation in the Middle East,” Novak said according to Interfax.
Reporting by Anton Kolodyazhnyy and Vladimir Soldatkin. Editing by Andrew Cawthornbe and Mark Potter
