The United Arab Emirates has been a world-renowned name in the tourism industry for the past decade now but what grew its economy from the ground up was petroleum, although the nation has never advertised itself as a huge petroleum supplier, it is still a very important name in the petroleum world.
On 14th September 2019, Saudi’s oil rich regions were attacked with drone strikes and the production and distribution chain all over the world was disrupted causing a ruckus in the global markets which are already crumbling upon themselves due to various other unfavorable factors. The responsibility for the attacks was later taken by the Yemeni Houthi rebels who according to the United States are backed by Iran. The attack is taken seriously and is being investigated although the damage is done, and the oil supply chain is disrupted all over the world causing hikes in the petroleum product prices during the time when global inflation seems imminent. United Arab Emirates has stepped up and is providing LPG and other petroleum products to the principal customers of the Saudi supply chain such as India and the United States. While oil supplies from Saudi Arabia have not been impacted in a huge substantial way in the aftermath of a massive attack on the kingdom’s crude oil facilities, LPG imports have been impacted. Saudi Arabia has deferred at least two shipments of LPG as it struggles to quickly recover the 5 million barrels per day of output that was lost in the attacks.
With UAE helping out the energy sector is somewhat supposed to be helped by this move.