Emmanuel Macron has been caught saying Joe Biden That their Middle Eastern allies cannot increase oil production as the European Union tries to replace Russian crude, which has vowed to impose sanctions by the end of the year.
French President talking on the sidelines of his American counterpart G7 The UAE and Saudi Arabia were warned at Monday evening’s summit in Germany that they were close to capacity and unable to make up for the shortfall.
His words will create an apprehension that what is lacking has become high. petrol And energy costs may be here to stay, and could worsen as Europe’s ban on most Russian oil products goes into effect by the end of the year – with gas sanctions to follow.
Macron was caught on camera warning Biden that the United Arab Emirates and Saudi Arabia were unable to fill Russia’s oil quotas that would be banned from the European Union this winter.
The French president is interrupted by US National Security Adviser Jake Sullivan (right), who advised the men to move away from cameras nearby
Macron was pressuring Biden to increase US production – something he has been reluctant to do under pressure from environmental groups – as a way to address the shortfall.
However, this is not clear from the short audio clip that was cut when US National Security Adviser Jake Sullivan cut two men to suggest they continue talking inside because of the camera in between.
In the footage, Macron can be heard saying ‘I had a call with MBZ,’ which is shorthand for UAE leader Sheikh Mohamed bin Zayed Al-Nahyan.
‘He told me two things,’ the French President continued. ‘I am at the max, max (production capacity). That is his claim.
‘And then they said (Saudi) can increase to 150 (thousand barrels per day). Maybe a little more, but they don’t have great potential before six months’ time.’
Sullivan then interrupted the two men by saying: ‘Careful. Maybe we should step inside… Because of the cameras.’
Europe is looking for ways to replace the 2 million barrels of oil it buys daily from Russia, as the continent imposes sanctions on the war in Ukraine over Putin’s regime.
The EU will ban all Russian oil imports by sea (file image) and most by pipeline by the end of the year, and is scrambling to replace about 2 million barrels per day
EU Commissioner Ursula von der Leyen announced earlier this month that the bloc would impose sanctions on 90 percent of Russian oil imports by the end of the year.
All marine imports of Russian oil and petroleum products will be cut, with only a partial exemption for oil coming through the pipeline.
The concession ensured the support of countries such as Hungary, Slovakia and the Czech Republic, which rely heavily on imports.
The import sanctions are designed as a way to punish Putin for invading Ukraine and deprive him of funding needed for the war effort.
But they are also helping to drive up prices and increase inflation which is affecting economies especially in the West.
Biden – who has already released some oil from US strategic reserves as a stop-gap measure – was hoping to get Saudi Arabia and the UAE to ramp up their own production as a way to calm the market.
But, if Macron’s words are to be believed, it seems that no country will be able to step up and fill this gap.
Unless the U.S. is prepared to increase its own production, the potential for further increases in prices and even potential energy shortages comes in the winter when energy demand rises. .
The EU intends to ban imports to deprive Putin of the money needed to wage war in Ukraine, but he has also raised petrol and energy prices drastically.
Russia is now in its fifth month of fighting in Ukraine and is making regional gains in the east, but has seen its economy hit by sanctions
The UAE’s top energy official said in a statement late Monday that his country was producing its prescribed OPEC+ quota of 3.168 million barrels per day (bpd).
“In light of recent media reports, I would like to clarify that the UAE is producing close to our maximum production capacity based on its current OPEC+ production baseline,” Energy Minister Suhail bin Mohammed Al Mazrouei said.
World oil prices have been rising steadily in recent months due to slackening supply and a pick-up in demand from the worst of the coronavirus pandemic. Prices have risen further since Moscow’s invasion of Ukraine in late February.
Benchmark crude rose on Monday after Reuters reported Macron’s comments. Brent oil prices rose 1.7% above $115 a barrel as the West seeks ways to reduce Russian oil imports to punish Moscow.
Saudi Arabia is producing 10.5 million bpd and has a nameplate capacity of 12.0 million-12.5 million bpd, which would theoretically allow it to increase production by 2 million.
The UAE is producing around 3 million bpd, has a capacity of 3.4 million and is working on increasing it to 4 million bpd.
Europe is looking for ways to replace 2 million bpd of Russian crude and some 2 million bpd of refined products, which Ukraine imported from Moscow before the war.