‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
The UAE's decision to leave OPEC on April 28 stems from long-standing tensions over production quotas and a deteriorating relationship with Saudi Arabia, exacerbated by the recent war with Iran. According to Johns Hopkins economist Steve Hanke, the conflict heightened fears over future oil market access, prompting the UAE to prioritize immediate production and revenue. The move aligns with the UAE's strategy to maximize profits amid concerns about declining long-term fossil fuel demand and regional instability.
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The decision was shocking. But the announcement April 28 that the UAE was leaving OPEC caps years of tension where the desert state chafed under the cartel’s quotas, and recently, encountered severe strain in its relationship with Saudi Arabia, the group’s most potent force by far. Though it had felt strains before, it was the war in Iran that pushed the UAE over the edge. “The war suddenly made job one for the UAE ‘take the money and run,'” says Steve H. Hanke, professor of applied economics at Johns Hopkins University. “First, OPEC stood partially in the way, now the Iran war poses a much bigger danger for a long time to come.”Recommended Video The UAE didn’t mention the Gulf conflict in its public announcement.
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