SA-UAE oil rivalry pinching pockets of Indians
The difference between the two world's biggest oil-producing countries led India to hike the fuel prices more often that reached a six year high. The differences between the United Arab Emirates(UAE) and Saudi Arabia(SA) arose over oil production quotas. Though OPEC nations including Russia tried to take them to the negotiation table, the talks were coming to a stand still and were postponed indefinitely.
The problem began last week when the UAE rejected a proposal by OPEC leaders, Saudi Arabia and Russia to extend output curbs for another eight months. Saudi Arabia supports a plan for OPEC producers to increase oil output in stages by a total of two million barrels per day (BPD) from August through December 2021. Saudi Arabia also wants to extend the remaining cuts until the end of 2022. The UAE demanded that its own production quota be revised upward, a move that would allow it to increase output further.
The UAE said it could support raising production to two million BPD through the end of the year, but extending a cut in output beyond April would be 'unfair to the UAE'. Thus these two oil producing countries committed to their demands led the talks to stalemate.
As the two Gulf countries were hit hard by the Covid-19 causing economies to shrink. So They now want to bring the economy back on track by producing more oil. Thus the rift between two countries turned into rivalry and became a heavy burden to the fuel consumers like India.