With oil demand shooting up, the UAE is ready to step in with higher supplies, and lower prices in the process.
The United Arab Emirates has officially exited the OPEC, a move analysts say could weaken the cartel’s pricing power and align more closely with United States energy interests.
The withdrawal, which took effect Friday, follows long-standing concerns by the UAE over production quotas that limited its ability to expand oil output despite heavy investment in capacity.
Experts say the timing is significant, coming amid global supply disruptions linked to tensions around the Strait of Hormuz, where a blockade has driven oil prices sharply higher.
Analysts believe the UAE could boost production by up to two million barrels per day once conditions stabilise, potentially easing global prices. This could benefit major consumers, including the United States, which has long sought to reduce OPEC’s influence on global oil markets.
The development also comes as high fuel prices continue to weigh on economies and political dynamics, particularly in the US, where Donald Trump faces mounting pressure ahead of midterm elections.
While increased UAE output may help stabilise markets, it could also reduce profits for US energy producers currently benefiting from elevated prices. Experts describe the move as a signal of greater openness to global trade and shifting alliances in the energy sector.
