After the UAE’s withdrawal, Russia and Kazakhstan remain in “OPEC Plus” | economy

The Kremlin said on Wednesday that Russia intends to remain in the OPEC+ alliance, expressing its hope that the alliance of oil producers will continue to work amid the current turmoil in the global energy market, and Kazakhstan also announced a position similar to Russia.

Yesterday, Tuesday, the UAE announced its withdrawal from OPEC, starting next May 1. It was the fourth largest producer in the OPEC Plus alliance, while Russia ranks second after Saudi Arabia.

Kremlin spokesman Dmitry Peskov praised the OPEC+ alliance, describing it as an “important bloc,” especially in light of the current turmoil in global markets.

Reducing volatility

“This formula contributes significantly to reducing the volatility of energy markets and makes their stability possible,” Peskov said during a daily telephone press conference.

He added that Russia respects the UAE’s decision to withdraw, and that it hopes to continue Moscow’s dialogue with it in the field of energy.

Russia decided to join the OPEC+ alliance in 2016. Estimates from the International Energy Agency indicate that the alliance produced about 50% of the world’s oil and oil derivatives production last year.

Kazakhstan’s position

The Ministry of Energy of Kazakhstan announced on Wednesday that the country is not considering withdrawing from the OPEC Plus alliance. Kazakhstan has the largest proven oil reserves in the Caspian Sea region.

Yesterday, Tuesday, two Iraqi officials in the oil sector told Reuters that Iraq does not intend to withdraw from OPEC or the OPEC Plus alliance, and the two officials added that Baghdad prefers “the presence of a strong organization to ensure that oil prices remain at stable and acceptable levels.”

In a related context, Kuwaiti Prime Minister Sheikh Ahmed Al-Abdullah chaired a meeting of the Supreme Petroleum Council on Wednesday. A Cabinet statement, according to what was reported by Kuwait News Agency, said that the Supreme Petroleum Council listened to an explanation of the repercussions of the UAE’s exit from OPEC and OPEC Plus.

There was no official position issued by Kuwait regarding the Emirati decision.