UAE ditches OPEC after 60 years, threatens cartel grip on oil
The UAE just shattered OPEC's coordination model with 48 hours' notice. After nearly six decades of membership, the Emirates announced its exit effective May 1, citing production flexibility and national interests as Brent trades at $111 per barrel. The timing exposes the cartel's weakness: with Iran war disruptions closing Hormuz and straining UAE-Saudi relations, Abu Dhabi chose revenue maximization over quota discipline. OPEC's spare capacity now concentrates in fewer hands, while the UAE gains freedom to flood markets or court strategic buyers.
Sources
- UAE leaves OPEC after decades: What it means for oil prices — Open The Magazine
- Why is the UAE leaving OPEC? — Atlantic Council
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