Japan asks UAE to further increase oil production

Japan has asked the UAE to consider the possibility of an additional increase in oil production to stabilize prices for this raw material.

The topic was discussed on Monday at a meeting in Tokyo between Japanese Cabinet Secretary General Hirokazu Matsuno and UAE Industry and Advanced Technology Minister Sultan bin Ahmed Al Jaber, according to the Japanese TV channel NHK.  

The Secretary General of the Japanese government also welcomed the decision of OPEC+ to increase oil production in July-August. In addition, the parties agreed to intensify the development of bilateral cooperation.

Oil prices in Japan on Monday rose to a maximum since July 2008 against the backdrop of continued instability in the global energy market. Thus, the price for 1 kilolitre (6.289 barrels) of Dubai crude oil exceeded 86,000 yen ($658 at the current exchange rate), which is about $18 higher than on June 3.

According to local analysts, the market is now dominated by pessimistic forecasts regarding the continuation of the period of instability and rising prices for raw materials. In particular, they are associated with a negative assessment of the OPEC + decision to increase oil production in July and August.

OPEC+ countries last week decided to evenly redistribute the September oil production quota in the amount of 432 thousand barrels per day for July and August. Thus, the volume of production in July and August will be 648 thousand barrels per day. In addition, the countries of the alliance have extended the deadline for compensating the under-reduced volumes of oil for debtor countries until the end of 2022.