Saudi Arabia and the United Arab Emirates vow to deliver a 'significant increase' in oil output if the world faces a winter supply crunch

Saudi Crown Prince Mohammed bin Salman in the near future. Bernd von Jutrczenka/Getty Images
OPEC leaders Saudi Arabia and the UAE agreed to "significantly increase" oil production if needed.
Countries have pledged to pump out more oil if the world faces a supply crisis this winter.
Saudi Arabia, UAE and other OPEC countries have spare capacity of up to 2.7 million bpd.
OPEC leaders Saudi Arabia and the United Arab Emirates pledged to "significantly increase" oil production should the world face a supply crisis this winter, sources familiar with the matter told Reuters.
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The two countries could supply "significantly more," sources added, but only if the supply crisis worsens in the coming months.
"With the possibility of no gas in Europe this winter, with a potential price cap on Russian oil sales in the new year, we can't toss every barrel on the market right now," a source told the outlet.
In July, sources told The Wall Street Journal that Saudi Arabia is close to exhausting its oil production capacity as it is already close to its limit. The problems stem from maintenance needs, production delays on some fields and pressure level issues.
But the latest announcement reverses those problems after sources told Reuters that Saudi Arabia, the United Arab Emirates and other OPEC members have up to 2.7 million barrels a day of idle production capacity.
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"Only when it comes to a protracted crisis can we prove that we have more spare capacity," sources said.
Saudi Arabia is OPEC's top producer with production of around 10.6 million barrels per day in July, while the United Arab Emirates is third after Iraq, with production of around 3.1 million barrels per day, according to the group are.
A global energy crisis sparked by Russia's war with Ukraine, which has subsequently squeezed supplies, has countries concerned about their winter supplies. Europe in particular fears that Russia will completely shut down gas supplies to the region in response to Western sanctions.
Germany is particularly suffering the effects of the energy crisis, prompting leaders to draw up contingency plans to conserve fuel ahead of the colder months.
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In response to a tight oil market, OPEC+ announced at its most recent meeting that it would increase daily production by 100,000 barrels per day in September, which would cause oil prices to surge above $100.45 a barrel on Wednesday .
At the time of writing, benchmark Brent crude futures are down 1.4% at $95.38 a barrel, while West Texas Intermediate crude is down 1% below $90 a barrel for the first time since late February .
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