Are pushed-up oil prices the result of Gulf Rivalry?
Economy

Are pushed-up oil prices the result of Gulf Rivalry?

The United Arab Emirates and Saudi Arabia are in a bitter public rift over the oil production quotas this week that has pushed oil prices to a six-year high. These two countries are the biggest oil-producing nations in the world which left the energy markets in oblivion over the oil prices.

For the past eighteen months Organization of the Petroleum Exporting Countries, Opec+ which comprises 23 nations is trying to cope up with the global economic crisis caused due to novel coronavirus. Saudi Arabia and Russia had to extend their output curbs for another eight months after the UAE rejected a proposal by Opec+ leaders. This is where the problem began as UAE wanted to renegotiate its current baseline. According to AsiaOne Magazine News sources, baseline comprises the level where production cuts or increments are calculated which gives them the freedom to pump out more oil from the fields. This renegotiation is not going down well with Saudi Arabia which is bringing up the years-old rift between the two princes. 

Both countries want to reduce their dependence on hydrocarbon exports and diversify their economy which is a result of much bigger disagreements in the past.