Logo of Phnom Penh Post newspaper Phnom Penh Post - Japan urges UAE to pump more oil as prices increase



Japan urges UAE to pump more oil as prices increase

Content image - Phnom Penh Post
A service attendant fills up a vehicle at a petrol station in Tokyo. AFP

Japan urges UAE to pump more oil as prices increase

Japan on March 20 urged the UAE to pump more oil to calm markets rocked by Russia’s military offensive in Ukraine, the latest major consumer to lobby Gulf producers.

The plea by Japan’s Foreign Minister Yoshimasa Hayashi came during meetings with Emirati officials which coincided with a visit by Germany’s economy minister, three weeks into the Russian offensive.

British Prime Minister Boris Johnson also flew to the UAE and Saudi Arabia to push for more oil last week in a bid to ease prices of over $100 a barrel and secure non-Russian supplies.

Hayashi asked “the UAE to contribute to the stabilisation of the international oil market by supplying a greater amount of oil, securing spare productive capacity as a leading member of OPEC+”, a Japanese foreign ministry spokesperson told an online briefing.

The UAE supplies about a third of Japan’s oil imports.

There was no promise of more production from the UAE, which has stressed its alignment with the OPEC+ oil alliance that includes Russia.

Hayashi’s talks with UAE Foreign Minister Abdullah bin Zayed Al Nahyan and Industry Minister Sultan Al Jaber come after Prime Minister Fumio Kishida made the same request in phone calls with the Emirati and Saudi leadership last week.

The UAE “may be more willing to open the taps” than Saudi Arabia as it wants to capitalise on its oil reserves more quickly, Torbjorn Soltvedt, Middle East and North Africa analyst at Verisk Maplecroft, told AFP last week.

The UAE’s ambassador to the US signalled the previous week that it favoured higher production in OPEC+, sending prices lower. But the UAE reaffirmed its commitment to OPEC+ just a day later.

Calls to raise oil production have so far fallen on deaf ears.

“I think you need to talk to the Saudis about that,” Johnson said after his trip to Riyadh, when asked if he had won any guarantees for more oil.

Analysts say oil producers don’t have the spare capacity to replace Russian exports, and are reluctant to cause a rift with their OPEC+ partner.

They also fear creating market panic if all reserve capacity is used up, analyst Amena Baker from Energy Intelligence told AFP this month.

However, Germany announced a long-term energy partnership with Qatar on March 20 as it looks to reduce its dependence on Russian gas.

The agreement came following a visit to Doha by German Minister for Economic Affairs Robert Habeck, who then travelled to the UAE.

MOST VIEWED

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’