UAE Exit Strips OPEC of Clout, Risks Bitter Price War
The government said output will rise gradually to protect national interests as Middle East war disruptions tighten global oil supplies.
- On Tuesday, the United Arab Emirates announced it will officially withdraw from OPEC and OPEC+ on Friday, citing "national interests" and reflecting the country's "long-term strategic and economic vision."
- Other producers including Angola and Indonesia previously exited citing production disputes or domestic priorities, and the UAE government plans to increase output "in a gradual and measured manner, aligned with demand and market conditions."
- Energy analyst Brown said increased UAE output could accelerate market stabilization: "That should be a lot quicker than we otherwise expected it to be because we're going to have a hell of a lot more barrels coming online from the UAE."
- This exit coincides with an ongoing fuel crisis sparked by Iran war blockades of the Strait of Hormuz, challenging OPEC's dominance as the cartel represents 50 per cent of global oil production.
- Associated Press business writer David McHugh noted experts predict oil consumption will peak in coming years as the "world transitions to renewable energy sources that do not emit carbon dioxide," making current production restraint costly.
28 Articles
28 Articles
Good news for India: UAE can now send more oil via Fujairah, bypassing Hormuz
Habshan–Fujairah Oil Pipeline: The exit from the OPEC grouping has freed the UAE from Saudi-decided production caps. It can raise petroleum output and route more crude to India, using the Habshan-Fujairah oil pipeline, bypassing the Strait of Hormuz. The weakening of the oil cartel will strengthen India's energy security.
Barclays Sees UAE Oil Supply Growth Accelerating Post-OPEC
After quitting OPEC and OPEC+, the United Arab Emirates (UAE) is set to grow its oil production faster when the current Hormuz crisis is over, according to analysts at Barclays. In a surprise announcement on Tuesday, the UAE said it is quitting OPEC and the wider OPEC+ alliance effective May 1, to pursue its national interests. For years, the UAE has been working to boost its crude oil production capacity to 5 million barrels per day (bpd) by 20…
Nigeria: UAE Opec Exit - Nigeria Under Pressure to Raise Output
The United Arab Emirates on Tuesday announced its decision to exit OPEC and the broader OPEC+ alliance, citing the need to prioritise "national interests" amid rising global energy uncertainty driven by geopolitical tensions, including the US-Israel conflict with Iran.
UAE Quits OPEC: What It Means For India's Oil Prices, Fuel Bills
Being able to deal with the UAE as a separate seller should give Indian refineries the chance to re-adjust risk levels and pricing, particularly if some volume of crude is routed via overland pipelines to bypass the Hormuz blockade.
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