The UAE’s exit marks a blow to OPEC’s power. Could Venezuela be next?
The United Arab Emirates is leaving OPEC after nearly 60 years, a move that weakens the cartel and challenges Saudi Arabia's influence over oil production quotas. The UAE, frustrated by production limits that cap its output at 3.4 million barrels per day despite a 4.85 million capacity, cited national interests as the reason for its exit. Its departure may encourage other members, like Venezuela, to follow, especially under U.S. political pressure. While immediate production increases are unlikely due to war-related infrastructure damage, the UAE is expected to boost output over time, potentially lowering global oil prices.
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Open this photo in gallery:The UAE has sustainable production capacity of 4.85 million barrels a day, but under OPEC, it’s capped at 3.4 million – 30 per cent below its capacity.Lisa Leutner/The Associated PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe incredible shrinking OPEC oil cartel shrank again on Tuesday when the United Arab Emirates called it quits after almost 60 years of membership. The exit of the world’s seventh-largest oil producer is a blow to OPEC and its taskmaster, Saudi Arabia, and a gift to U.S. President Donald Trump, who has long decried the group’s price-setting power.The UAE is leaving on May 1. It gave only nebulous reasons for waving goodbye.
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