Citing four sources familiar with the negotiations, Reuters said in an exclusive report on Wednesday that Saudi Arabia sought help from its Gulf ally the United Arab Emirates (UAE) in convincing Russia to sign on to deeper oil supply cuts at this month’s OPEC meeting.
The sources said: “The UAE’s de-facto ruler, Sheikh Mohammed bin Zayed, hosted crucial talks between Saudi Arabia and Russia in Abu Dhabi, where the three nations ironed out what would become one of the deepest supply cuts in a decade.”
One of the sources noted: “The message Russia wanted to send is that it is supporting Saudi Arabia at a crucial moment and that the alliance is solid. The UAE’s role shouldn’t come as a surprise. Russia has very strong ties with the UAE.”
According to OPEC sources and estimates by analysts such as Energy Aspects, “global oil prices would likely have fallen without Russia’s participation.”
In its latest Dec 5-6 Vienna meeting, the OPEC+ announced a new supply cut of 500,000 barrels per day (bpd), adding to the previous reductions of 1.2 million bpd through March 2020.
Since then, oil prices have risen towards September highs, although the bulls have held their horses amid persisting doubts over the US-China trade deal. At the press time, WTI trades weaker around 60.50 while Brent remains sidelined below $ 66 handle.
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