Business
U.A.E.’s OPEC Exit Raises Questions About the Oil Cartel’s Role
The United Arab Emirates’ move to quit OPEC signals a desire to boost output and also raises questions about the future role of the oil cartel.
Analysts said the withdrawal marks a significant shift for OPEC. “Alongside Saudi Arabia, it is one of the few members with meaningful spare capacity—the mechanism through which the group exerts market influence,” said Jorge León, head of geopolitical analysis at Rystad Energy.
Once outside the group, the U.A.E. would have both the incentive and the ability to increase production, León added, raising concerns about the sustainability of Saudi Arabia’s role as the oil market central stabilizer.
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