United Arab Emirates Scorns OPEC Quotas
The United Arab Emirates has carried out a threat to ignore its OPEC quota and authorized companies to pump almost 20% more oil in July, industry sources said Wednesday.
“This should bring (oil) prices down very quickly,” said one trader. “It is yet another link in the chain of disarray which is creeping into OPEC.”
OPEC members at their Vienna meeting earlier this month agreed to extend the group’s 15.06-million barrel per day quota for the rest of the year--a compromise between Persian Gulf states urging higher quotas and the majority, which wanted to curb output. Oil Minister Mana Said Oteiba has repeatedly rejected the UAE quota, claiming that, with recoverable reserves of about 100 billion barrels, the UAE is second to Saudi Arabia and deserves a much higher output.
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