UAE exit weakens OPEC+ power over oil market but group to stay together, sources say

UAE's departure from OPEC after nearly six decades signals a shift in global oil dynamics, yet the cartel is expected to endure.

UAE's departure from OPEC after nearly six decades signals a shift in global oil dynamics, yet the cartel is expected to endure. | Contesto: cronaca

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  • UAE exit weakens OPEC+ power over oil market but group to stay together, sources say

Contesto

The United Arab Emirates announced on Tuesday that it will withdraw from the Organization of the Petroleum Exporting Countries after nearly 60 years of membership, dealing a symbolic blow to the cartel's influence over global oil markets but not triggering an immediate breakup, according to sources familiar with the matter. The UAE, the fourth-largest producer within OPEC, informed the group of its decision to leave, ending a relationship that began in 1967. The move comes amid growing tensions between the Emirates and Saudi Arabia, OPEC's de facto leader, over production quotas and the pace of output increases. While the UAE has long pushed for a higher production baseline to reflect its expanding capacity, Riyadh has resisted, seeking to maintain tighter control over supply to support prices. The departure reduces OPEC's collective output share and underscores the challenges the group faces in maintaining unity as members pursue divergent national interests. The UAE's exit is the first by a major producer since Qatar left in 2019, and it follows a period of internal discord that has occasionally threatened the cohesion of the broader OPEC+ alliance, which includes Russia and other non-OPEC producers. Analysts say the loss of the UAE's roughly 3 million barrels per day of production weakens OPEC's ability to influence prices, though the group still controls about 40% of global crude output. The decision also reflects a broader strategic shift in the UAE's energy policy, as the country invests heavily in renewable energy and seeks to diversify its economy beyond hydrocarbons. By leaving OPEC, Abu Dhabi gains greater freedom to set its own production levels without being constrained by collective quotas, potentially allowing it to maximize revenue from its oil fields or accelerate investments in future-oriented technologies. However, the move carries risks, including potential retaliation from Saudi Arabia and a loss of diplomatic leverage within the energy world. Despite the UAE's exit, sources indicate that OPEC and its allies are likely to maintain their cooperation framework, as the remaining members—particularly Saudi Arabia and Russia—have strong...

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Categoria: cronaca