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, citing national interests and frustration with production quotas that limit its output to 30% below capacity. The move weakens OPEC's influence, especially Saudi Arabia's control over supply and pricing, and aligns with U.S. goals of lowering global oil prices. As a major swing producer, the UAE's eventual increase in production could reshape market dynamics, though infrastructure damage and regional tensions currently constrain immediate gains. Venezuela, under U.S. influence, may be the next to exit, further destabilizing the cartel.
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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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