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News Wire / economy

UAE Departure From OPEC Plus Has Muted Oil Market Impact

Sky News Arabia Radio Abu Dhabi 14d14d Impact 10

The United Arab Emirates stated it will continue its role as a responsible energy producer by increasing production in a gradual and studied manner. Energy expert Ayub from the Tahrir Institute stated the move is a political and economic message indicating UAE dissatisfaction with OPEC leadership and reflecting the state of UAE-Saudi Arabian relations. The UAE will withdraw from OPEC and OPEC Plus starting in May following a comprehensive assessment. The organization was founded in 1960 to promote the interests of oil exporting countries and stabilize prices. Energy expert Neher Ismail noted the exit could weaken the group and cause instability amid regional conflicts in Yemen and Sudan and an energy crisis in Iran. The UAE has been a member of the group since 1971 and was recently considered a key producer among the 12 members.

The United Arab Emirates stated it will continue its role as a responsible energy producer by increasing production in a gradual and studied manner. Energy expert Ayub from the Tahrir Institute stated the move is a political and economic message indicating UAE dissatisfaction with OPEC leadership and reflecting the state of UAE-Saudi Arabian relations. The UAE will withdraw from OPEC and OPEC Plus starting in May following a comprehensive assessment. The organization was founded in 1960 to promote the interests of oil exporting countries and stabilize prices. Energy expert Neher Ismail noted the exit could weaken the group and cause instability amid regional conflicts in Yemen and Sudan and an energy crisis in Iran. The UAE has been a member of the group since 1971 and was recently considered a key producer among the 12 members. The UAE is planning to expand its oil volumes by 5 million barrels a day. Once exports normalize, the UAE could bring many barrels to the market without restrictions, which may benefit the US. While the closure of the Strait of Hormuz limits short-term market effects, the normalization of exports could eventually allow the UAE to bring many barrels to market without restrictions. The move is interpreted as a signal of the Emirates' alignment with Trump's unilateral approach to multilateralism. Energy expert Ayub stated the exit's impact will likely be long-term and may not immediately affect markets as Hormuz-related restrictions have normalized. The exit is described as a success for US President Trump, who had previously criticized the organization.

Topics

energy oil UAE

Developing

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Sources · 7 independent

Sky News Arabia Radio

“the decision consolidates the UAE's commitment to its role as a responsible and reliable producer that anticipates the future of energy markets... will continue its responsible role through gradual and studied production increases”

Sky News Arabia Radio

“providing reliable and responsible and low-cost energy supplies... after two decades of cooperation with OPEC and its member states”

BBC World Service

“everybody's focused on the Strait of Hormuz. everybody's focused on the geopolitical developments in the Middle East. And that's why the market today does not take much notice of that move by the UAE.”

CNA938 Singapore

“the UAE exit represents a big win for US President Donald Trump. Mr Trump accuses the organization of quote, ripping off the rest of the world”

BBC WS backup

“maybe the departure of the UAE would give Saudi Arabia a stronger control of how things are run with an opaque.”

Radio Popolare

“gli Emirati Arabi hanno annunciato che il primo maggio, cioè Avener D, usciranno dall'otto.”

Radio Observador

“o que é que pode significar esta saída do terceiro maior produtor de petróleo do cartelo?”

Radio Popolare

“circa 4% della produzione mondiale è riconducibile agli Emirati, perché Prim era stato il catara a formalizzare l'uscita nel 2019”

CNN Turk Radyo

“birleşik Arap Emirlik yereği normalde satamıyorlardı belli birini isteri fiyatla bilir. Ola ıyla efendim hem de istediği fiyatla satacak.”

ABC NewsRadio AU

“a hell of a lot more barrels coming online from the UAE.”

RTHK Radio 1 Hong Kong

“能源部表示 決定是經過全面評估之後作出 強調將會繼續秉持負責任的態度 逐步增加石油產量”

WGN Radio 720

“United Arab Emirates says it's leaving Oh”

WBUR Boston

“The United Arab Emirates announced its exiting the OPEC oil cartel, which is led by Saudi Arabia and Russia.”

BBC World Service

“In a surprise announcement, the United Arab Emirates says it's leaving the OPEC groups of oil-producing countries”

WAMU 88.5 DC

“The United Arab Emirates announced its ex-exiting the OPEC Oil cartel which is led by Saudi Arabia and Russia, the UAE says that its decision is based on”

Radio Romania Intl

“Ministrul energiei din această țară a declarat pentru Reuters că decizia a fost luată după o analiză atentă a strategiilor energetice ale monarchiei”

BBC WS backup

“leaving the OPEC groups of oil producing countries dealing a major threat.”

WAMU 88.5 DC

“Arabia and Russia, the UAE says that its decision is based on”

WBUR Boston

“OPEC, which stands for the Organization of the Petroleum Exporting Countries, will now have just 11 states as members after the UAE's exit.”

NPR

“The United Arab Emirates announced it's exiting the OPEC oil”

KQED FM

“The United Arab Emirates announced it's exiting the OPEC oil cartel, which is led by Saudi Arabia and Russia. The UAE says that its decision is based on meeting the market's needs”

WAMU 88.5 DC

“the UAE says that its decision is based on trawley reports. The UAE has long been dissatisfied with OPEC's production quotas and curbs on output.”

Radio Romania Intl

“Decizia emiratelor Arabii Unite ar putea crea perturbări și ar putea slăbi grupul care, de obicei, caut să arate unitate”

ABC NewsRadio AU

“The United Arab Emirates is pulling out of the oil-producing nation's cartel known as OPEC, as the energy crisis, fuelled by the war in the Middle East, continues to bite around the world.”

CNN Turk Radyo

“Ben daha hiç bunun suudi arabistan, Birleşik Arabi Emelikleri arasındaki kavganın artık sonra randı. Qatar neden ayrılmıştı? Teyidini söyleyeyim. Qatar'a ambargı uygulandığında o da pekten ayrıldı.”

WNYC 93.9 FM

“The UAE has long been dissatisfied with OPEC's production quotas and curbs on output. But its fallout with Saudi Arabia over the conflict in Yemen and other regional issues appears to have accelerated its exit from the Saudi-led oil cartel.”

WNYC 93.9 FM

“members after the UAE's exit. The group has lost member states before.”

LBC London

“The United Arab Emirates is going to leave the OPEC group of oil producing nations after nearly 60 years. The Gulf States energy minister said being a country with no obligation under the group would give it more flexibility.”

KQED FM

“OPEC, which stands for the Organization of the Petroleum Exporting Countries, will now have just 11 states as members after the UAE's exit.”

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