UAE OPEC Exit: In a move that has stunned the entire world, the United Arab Emirates has decided to move out of the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ along with the Gulf Cooperation Council (GCC). India stands to gain by UAE’s OEPC withdrawals as it would mean softer prices, higher crude availability and stronger bilateral energy ties.
For USA, a divided OPEC is less capable of coordinating supply cuts that could potentially push prices upward. This aligns with the broader goal of Donald Trump to keep global energy prices in check. In early trade on Wednesday, the Indian Rupee slipped 13 paise to 94.81 against the US dollar due to rising global crude oil prices.
UAE OPEC Exit-Reasons Behind The Walkout
The UAE would formally exit OPEC on May 1 to step away from production quotas. This would help UAE increase supply flexibility to ease global crude prices.
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For long, United States President Donald Trump has accused OPEC of manipulating global oil markets to keep prices high artificially. Trump has argued repeatedly that OPEC rips off the world by inflating oil prices. The exit of UAE directly feeds into Trump’s narrative by exposing the bloc’s internal fractures.
Traditionally, OPEC has projected unity despite a series of disagreements over geopolitical tensions and production quotas.
OPEC, OPEC+ And GCC Members
The OPEC group consisted of Iran, Iraq, Kuwait, Venezuela, Algeria, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, Saudi Arabia and the United Arab Emirates (UAE).
On the other hand, OPEC+ included Algeria, Republic of Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates (UAE) and Venezuela. The GCC included Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
Will Iranian Oil Market Go Irrelevant?
According to media reports, Iranian oil market could be rendered irrelevant if both Saudi Arabia and United Arab Emirates start maxing out their oil production by the end of 2026.
