The crude oil market was shaken by reports that the United Arab Emirates (UAE) is considering leaving the Organization of the Petroleum Exporting Countries (OPEC).
This follows a Wall Street Journal report citing an Emirati official saying that the UAE is planning to withdraw from OPEC.
This is said to be the result of rising tensions between Saudi Arabia and the UAE, which are fighting over oil and the war in Yemen.
As a result, crude oil prices fell sharply by more than 2% due to fears that if the UAE exits the group, it will implement its own oil production plan that suits its interests.
However, shortly after, Reuters later reported that the news was untrue.
The streak, oil prices again erased those losses to close the end of last week's trading higher.
In today's European session, Brent crude oil futures traded firmer at $85 a barrel, while US WTI traded higher at $89 a barrel.
This is not the first time the UAE has reportedly considered leaving the alliance. However, this issue was raised again when the tension with Saudi Arabia increased.
The UAE is an important member of OPEC as it is the group's third largest producer after Saudi Arabia and Iraq and it is considered one of the few members that holds unused production capacity.
