No current plan for the UAE to leave OPEC oil alliance, sources say
The OPEC logo pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria.
Ramzi Boudina | Reuters
The United Arab Emirates does not intend to leave the influential OPEC oil alliance at this time, two senior officials with knowledge of the matter told CNBC, after a recent report signaled internal talks over such a departure.
The sources spoke on condition of anonymity as they are not allowed to publicly discuss the topic. The UAE oil ministry and Adnoc, the state-owned oil company of the United Arab Emirates, did not immediately respond to CNBC requests for comment.
On March 3, the Wall Street Journal reported that rising political disagreements between OPEC+ chair Saudi Arabia and the UAE have once more sparked questions over the latter’s future in the producers’ coalition.
Such a departure would remove the cooperation of the third-largest producer of the OPEC subgroup and hint at further disunity within the alliance after the recent exits of Ecuador and Qatar — at a time when oil prices remain trapped between limited global spare capacity and potential demand increases from a reopening China.
The Brent contract with May expiry was trading at $84.76 per barrel at 1 p.m. London time, down by $1.07 per barrel from the previous close price. The front-month Nymex WTI contract was at $78.72 per barrel, lower by 96 cents per barrel from the previous settlement price.
Abu Dhabi has historically been a staunch ally of Saudi Arabia in OPEC dynamics and, alongside Kuwait and Riyadh, shaped the informal Gulf trifecta that has occasionally stepped in to assist group policies with additional, voluntary production cuts. Beyond oil strategy, the close ties between Saudi Arabia and the UAE have started to show some strain, as the two countries have diverging aims in the conflict in Yemen and vie for foreign investment.
Oil divisions first emerged in the summer of 2021, a year into a spartan Saudi-led production strategy to drastically lower OPEC+ output in response to the Covid-19 demand shock for transport fuels. OPEC+ decisions require unanimous endorsement, and the UAE at the time exercised its veto to hold up a group meeting until it earned a concession that it — alongside Russia, Kuwait, Saudi Arabia and Iraq — should receive a higher production “baseline.” Baselines are the reference level that determine the starting point for a country’s pro-rata contribution to OPEC+ collective cuts or increases. The higher the baseline, the higher the level to which an OPEC+ member country may produce without violating its commitments.
Individual members’ bids to increase their OPEC+ quotas have largely died down in recent months, as underinvestment, sanctions, sabotage and infrastructural collapse saw the quotas of several countries surpass their production capacity. The UAE is one of a handful of OPEC+ members that has remaining spare capacity and is working to bolster it. Paris-based watchdog, the International Energy Agency, found that the Emirates’ most recently produced 3.23 million barrels per day in February, well below its country’s IEA-assessed sustainable capacity of 4.12 million barrels per day. Abu Dhabi is working to hike its spare capacity to 5 million barrels per day by 2027.
The tense discussions of 2021 sparked questions of potential pressure that the state-owned Abu Dhabi National Oil Company could be exercising on the oil ministry to reduce oil cuts that rein in national revenues. Three sources indicated to CNBC that there is currently no friction between Adnoc and the ministry over the UAE’s ongoing participation in OPEC+. The two organizations are fully aligned, one of the sources said.
Striking a balance between the profit priorities of national oil companies and the OPEC+ loyalties of oil ministries often epitomizes the challenge that OPEC+ member countries face to choose between short and long-term gains. The coordination between the two entities is seamless in some countries: Saudi Arabia’s state-controlled Aramco typically awaits the conclusion of OPEC+ meetings before releasing its official formula prices to customers at the start of the month.
Adnoc is in a cycle of growing and diversifying the reach of its business. The company is expected to float 5% of its Adnoc Gas business in a highly anticipated public offering and begin trading on March 13. Adnoc is also looking to open a full-fledged Geneva office for its trading subsidiary on an uncertain timeline.
Founded in 1689, Husqvarna was a musket maker for the king of Sweden – but now, the company best known for quirky motorcycles and commercial riding mowers is becoming an innovator in the field of robotics, and its latest fleet of electric autonomous mowers are eager to get grazing.
Husqvarna’s autonomous lawnmowers made history earlier this year at the AIG Women’s Open, when they became the first autonomous groundskeeping solution to see duty during a UK Major golf week.
“At the AIG Women’s Open, the Husqvarna portfolio is helping us deliver this goal through improved resource management, regular lightweight mowing and reduced carbon usage,” explains Royal Porthcawl’s Course Manager, Ian Kinley, who has championed the use of robotic technology at the course. “With the AIG Women’s Open set to be the largest-ever women’s sporting event in Wales, we know there’s tremendous pressure to produce playing surfaces that are worthy of such a high-profile event.”
The robots themselves operate a bit differently than Husqvarna’s traditional line of big, bad, zero-turn riding mowers that whip through thick grass once or twice a month with heavy, whirling blades. Instead, they employ a series of tiny razor blades that gently nibble at the grass daily – just like little electric sheep grazing on the turf.
“That cutting system, developed by Husqvarna engineers, has then become the basis for the entire robot mower industry, of which we’re the market leader,” Nick Rawson, VP of Strategy and Business Development at Husqvarna told Forbes.
Events like the AIG Women’s Open are proving that the little robot Huskies can get the job done quietly, sustainably, and with significantly less operator input. As such, you’d think everyone at Husqvarna would be excited about them.
You’d be wrong. The company’s franchise dealers have been hesitant to push them forward, effectively putting the parent company in the position of going B2C, or going home.
“Dealers live and breathe the previous technology,” said Yvette Henshall-Bell, Husqvarna’s President of its Forest and Garden division for Europe, in that same Forbes piece. “They want to protect that servicing, that aftermarket revenue. Whereas if they really thought about what the customer’s problems are and the job to be done, they would be looking at a completely different solution.”
A solution, frankly, that looks a lot like a little robot mower.
The things, themselves
Husqvarna offers three types of autonomous electric mowers aimed at commercial golf courses, but the Husqvarna CEORA for large-area mowing, and Husqvarna Automower, for smaller, steeper and more complex areas, are the models relevant to this story.
The bigger CEORA can handle up to 18 acres of ground twice each week, while the Automower, with its 80V battery and pinpoint precision EPOS (Exact Positioning Operating System) software, can handle another 2.5 acres. Both are fully electric, and can guide themselves back to their pens to recharge as needed.
Prices aren’t public, but the Husqvarna CEORA and Automowers are available as part of a custom lease package through Husqvarna Finance that will include access to the company’s customizable back end and ongoing support. Check with your local dealer for more.
Electrek’s Take
As a typically pro-union, pro-labor type of guy, I am hesitant to heap praise upon a robot taking away anyone’s job. That said, it does seem to be difficult for landscapers and construction crews to keep and find good labor at rates they can afford (and, let’s face it – the current Trump Administration isn’t going to be making that any easier). As such, if companies like Husqvarna and John Deere and Einride and others can build a demonstrably better mousetrap at a compelling price point … good for them. (?)
Let us know what you think in the comments.
SOURCES: Forbes, Golf Monthly; images by Husqvarna.
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Environment
Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.
Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.
Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.
Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.
Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:
We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.
Electrek’s Take
September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.
We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.
Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.
And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.
Read more: From $189 a month: 5 of the best EV lease deals in November [Updated]
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