Why OPEC Is Worried About The UAE

The UAE’s largest oil company, ADNOC, this week approved its oil investments for the next five years, to US$122 billion. As ADNOC’s five-year plans go, it’s not the largest, (2019-2023 5-year plan was $132 billion), but considering what a rough year 2020 has been for oil demand, it’s considerable. It may seem counterintuitive to pour substantial investments into oil production and oil refining at a time when OPEC is pulling back the reins on its producers in an attempt to draw down global oil inventories and rebalance the…