Saudi Arabia And The UAE Won’t Be Tapping Emergency Oil Capacity

Saudi Arabia and the UAE have the capacity to produce more crude oil, but they won't tap that capacity—at least not yet, according to three anonymous Reuters sources. The message is a critical one for the OPEC producers to get across to the market, which cannot be seen as losing its control over the market—control that comes only from having the spare capacity to affect the market should the need arise.

According to the sources, Saudi Arabia and the United Arab Emirates are ready to deliver a "significant increase" in crude oil production…