UAE's departure from the OPEC oil cartel is not without precedence. Who could be next?
The UAE's exit from OPEC highlights ongoing tensions among member countries regarding production quotas. Analysts suggest that Kazakhstan, Nigeria, and Venezuela could be potential candidates for similar departures due to their increasing production capacities and changing market strategies. The situation reflects broader challenges within OPEC as members grapple with compliance and the impact of domestic refining capabilities.
- ▪The UAE pumped about 2.37 million barrels per day in March, significantly below its sustainable capacity of 4.3 million bpd.
- ▪Kazakhstan and Nigeria are identified as potential 'flight risk' countries due to their overproduction and focus on domestic refining.
- ▪Venezuela's oil exports have risen above a million barrels per day, indicating a potential shift in its OPEC membership stance.
Opening excerpt (first ~120 words) tap to expand
At the heart of the UAE's decision lies a familiar tension: members that have invested heavily in boosting production capacity are increasingly reluctant to be constrained by quotas designed to support prices.The country pumped about 2.37 million barrels per day in March, compared with its sustainable capacity of roughly 4.3 million bpd, according to latest IEA data.'Flight risks'Analysts pointed to several potential "flight risk" countries, chafing at OPEC+ restrictions, that could consider giving up their memberships.Matt Smith, lead oil analyst at Kpler, flagged Kazakhstan as a key candidate, noting its persistent overproduction.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
