‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
The United Arab Emirates has announced its departure from OPEC, citing long-standing tensions and recent conflicts with Saudi Arabia. The decision is influenced by the ongoing war in Iran, which has raised concerns about the future of oil production and pricing. Economists suggest that the UAE aims to maximize its oil output in response to these challenges and the rise of green energy alternatives.
- ▪The UAE's exit from OPEC follows years of tension over production quotas and strained relations with Saudi Arabia.
- ▪The war in Iran has heightened the UAE's urgency to increase oil production to secure its economic interests.
- ▪The UAE plans to boost its oil output beyond OPEC limits, reflecting its strategic vision and investment in domestic energy.
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The decision was shocking. But the announcement April 28 that the United Arab Emirates 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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