UAE withdraws from OPEC and OPEC+: what will happen to the oil market?
Фото: Reuters
The United Arab Emirates is withdrawing from OPEC and OPEC+ on May 1. This decision could seriously affect the global oil market, as the country was one of the key participants in the organization and an important ally of Saudi Arabia.
Reuters reports this.
The Emirates’ decision comes amid tensions over the conflict with Iran. Abu Dhabi is unhappy with how other Arab states have responded to the Iranian attacks and believes their support has not been sufficient.
In addition to political reasons, there is also an economic interest. After leaving OPEC, the country will no longer have to adhere to oil production limits.
This means that the Emirates will be able to decide for themselves how much oil to pump and sell, without consulting other members of the association.
This is a serious blow for OPEC itself. For years, the organization has tried to maintain a common position, even despite disputes between member countries.
Now the UAE’s exit could upset this balance and weaken OPEC’s influence on the global oil market.
Experts are already suggesting that such a move could cause oil price fluctuations and add instability to the global energy market.
Earlier it was reported that Yiran had handed over to the United States a new proposal for resolving the war in the Middle East . The initiative involves opening the Strait of Hormuz and postponing negotiations on the nuclear program.
As a reminder, oil and natural gas prices fell after Iran announced the opening of the Strait of Hormuz. Markets reacted by falling prices amid expectations of reduced risks to energy supplies.
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