Russia confirms that OPEC+ will remain after UAE withdrawal, but no price war is expected

Russian news agencies reported that Alexander Novak, the deputy prime minister of Russia, said on Thursday the OPEC+ oil producing group would continue to work together despite United Arab Emirates' departure.

Novak, according to?reports?, said that he didn't expect a?price?war? after the UAE's departure given the?global?oil deficit.

The UAE announced on Tuesday that it would be leaving OPEC. This is a major blow to the oil producing group, as a new energy crisis triggered by the 'Iran War' has exposed discord between Gulf nations.

Russia was second behind Saudi Arabia in OPEC+ (OPEC plus its allies), while the UAE was fourth.

It is difficult to discuss a price battle when there is a market shortage. Interfax reported that Novak said, "What we're seeing is the deepest crisis of the industry."

The demand for oil is significantly higher than the supply today. The 'equilibrium' has been created by serious logistical problems, such as the situation in the Middle East", Novak told Interfax.

Novak also reaffirmed that Russia would remain in OPEC+ which was formed in 2016. (Reporting from Anton Kolodyazhnyy & Vladimir Soldatkin. (Editing by Andrew Cawthornbe, Mark Potter and Mark Potter.)

(source: Reuters)