Thoughts on the UAE leaving OPEC?

The UAE just announced it’s exiting OPEC and OPEC+ after nearly 60 years, citing its long-term economic vision and desire for more production flexibility. As OPEC’s third-largest producer with significant spare capacity, this is a notable blow to the cartel’s cohesion and Saudi-led influence. 

Key implications:

Weaker OPEC+ ability to coordinate cuts and manipulate global supply/prices.

UAE can ramp up output independently (they’ve chafed under quotas), potentially adding supply once Hormuz/ Iran disruptions ease.

Could mean more market-driven oil prices long-term and less cartel power good for consumers and energy independence?

Some see it as a win for Trump-era pressure against OPEC “ripping off” the world.

https://apnews.com/article/opec-united-arab-emirates-leaving-cartel-4966108c3fafacb67181152216deda14