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UAE’s OPEC exit: Shockwaves will be felt beyond oil prices
Cartel crack-up reflects growing friction and regional rivalry between the Saudis and the Emiratis.
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The United Arab Emirates has dealt a severe blow to OPEC with its plans to quit the oil cartel.
PHOTO: BLOOMBERG
The Iran war has already generated plenty of upheavals. On April 28 came yet another: the United Arab Emirates’ surprise announcement that it is quitting the Organisation of the Petroleum Exporting Countries (OPEC).
At first sight, the move seems curious for one of the Gulf’s wealthiest Arab monarchies. OPEC exists to maximise its producers’ oil revenues, which in the case of the UAE amount to over half of the country’s exports and around 80 per cent of government receipts. Leaving the cartel at a time of mayhem for the world’s oil supplies does not appear to make much sense.
