What's Behind the Oil Squabble in the Gulf?
You mightve seen recent headlines mentioning an unusual dispute among OPEC members thats causing major uncertainty in the oil market, especially as gas prices continue to tick up in the US. Whats going on: The United Arab Emirates blocked a plan introduced by its friend and neighbor, Saudi Arabia, that would boost oil output in stages. The UAE wants to increase its own production by more than the Saudi plan allows for, so talks fell apart and oil prices hit a six-year high earlier this week. The UAEs strategy: The country is envisioning a future with more renewable energy and stricter climate-focused policies. It wants to pump (and sell) as much oil as it can now to snag as much market share as possible when demand hits its peak, estimated to be around 2030. Looking ahead...the UAE and Saudi Arabia have brought riches to the Gulf through the extraction of oil; they want to use that wealth to prepare for a time when fossil fuels wont be as lucrativeand divergent strategies are leading them to butt heads.