Moscow: Russian Finance Minister Anton Siluanov said on Wednesday that the United Arab Emirates’ decision to leave OPEC will mean that oil-producing countries will boost production, which will lead to a decline in global prices in the future.
Russia is a member of the OPEC group of countries and coordinates its policies with OPEC members. Russia is seen as the main beneficiary of the rise in global oil prices due to the war in the Middle East.
Siluanov said, “Today we hear that one of the countries, the United Arab Emirates, is withdrawing from OPEC. What does this mean? It means that the country can produce as much as its production capabilities allow and put it on the market.”
Siluanov’s comments represent Russia’s first reaction to the UAE’s sudden exit. Russia has strong relations with both the United Arab Emirates and Saudi Arabia, the largest producer in OPEC.
He added, “If OPEC countries implement their policies in an uncoordinated manner (after the UAE’s exit) and produce oil to the extent that their production capacities allow and to the extent they want, prices will fall accordingly.”
He stressed that oil prices are currently supported by the blockade of the Strait of Hormuz, and that his expectations of increased supply indicate the situation when the passage is opened at some point in the future.
