UAE leaves OPEC, new equation in global energy market

Staff Report: PNN

The United Arab Emirates has officially withdrawn from the Organization of Petroleum Exporting Countries (OPEC). After long discussions, the decision has come into effect, creating new debate in the global energy market. Analysts say OPEC’s influence on oil prices may slightly decrease.

Experts say the UAE had long expressed dissatisfaction with production quota limitations. Despite investing to increase production, it could not supply the market fully due to quota restrictions. The decision aims to allow the country to independently increase production and supply.

Rachel Ziemba, senior fellow at the Center for a New American Security, said the timing was somewhat unexpected but the background had been developing for a long time. She believes the move may increase competition instead of regional cooperation.

Tensions in the Middle East are further complicating the situation. Uncertainty around the Strait of Hormuz and Iran-related conflict are disrupting oil supply, putting pressure on global prices.

Adnan Mazarei of the Peterson Institute for International Economics said that if conditions stabilize, the UAE could supply an additional 2 million barrels per day, which may ease price pressure.

Analysts believe that if OPEC’s influence declines, the United States may benefit the most, as reduced cartel control will increase global competition and producer independence.

Recently, Brent crude rose above 126 USD per barrel but later fell to around 108 USD. However, high energy prices have increased inflation and living costs globally.

Former US President Donald Trump believes oil prices will fall once regional conflicts end. However, analysts say stability depends largely on geopolitical conditions.

Observers say the UAE’s move is not only economic but also politically significant and may reshape global energy market balance in the long term.