United Arab Emirates announcing its withdrawal from OPEC

[WatChe]

UAE has suffered more damages in this war then Saudia Arabia because Iran has carried out more attacks on UAE then Saudia Arabia. There were already differences between these two countries and UAE has taken this as an opportunity to leave alliance of Saudia Arabia in OPEC. The reason is very obvious that UAE want to increase his oil production to cover damages due to this war. UAE also want to get rid of influence of Saudia Arabia because Saudia has not done much to help UAE in this crisis.

[Coyster]

And if you’re referring to the U.S., Trump literally just sent a letter to Congress yesterday about ending the war with Iran. Who exactly is going to step in?

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

That said, if the war in Iran ends, do you believe the attacks on the UAE would continue. It wouldn't. Though it is obvious that the relationship between Iran and their Gulf neighbors has been strained and they must be ready to protect themselves better and maybe even go on the offensive, when situations like this happens in the future.

[Fortify]

The United Arab Emirates (UAE) is quitting the Opec and Opec+ groups of major oil producing nations next month after nearly 60 years of membership.

The UAE said its decision would help it meet growing global energy demand in the long term after recent investments to boost its production capacity.

https://www.bbc.com/news/articles/cj4pxwlr52yo

What do you think will be the implications of this moved?

UAE was the 3rd largest producing country in the world and leaving the alliance means that there could be a shift from once a powerful organization to the one that is being challenge by UAE.

In a sense they could alleviate the issue of oil right now, as they can increased their production without worrying about any cartel's cap. They might have to find another route though to deliver oil to some nation. But once the war is over and the straight of Hormuz is open, they could freely distribute oil to anyone.

I didn't actually know that the UAE had much oil or contribution to OPEC, always assumed that Saudi Arabia was the biggest producer in the Middle East and these other countries simply had it's protection. At this point it seems like the alliance will shatter, which is probably what Trump wants because he seems to enjoy chaos in the oil markets. He's pushing the idea that America as the biggest oil producer, only benefits from higher oil prices, but it ignores how it's going to get way more expensive for the average person in every part of life and they won't appreciate that. There are plans to create new pipelines that avoid the Strait of Hormuz, but that takes a long time and will still be vulnerable to attack.

[WillyAp]

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

What happened to cause it is mostly a calculation. The OPEC forces its member states to reduce sales.
UAC is aiming for 5 mio Barrels per day. Allowed are 3.5 mio under OPEC restrictions.

[BALIK]

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

There is no war between Iran and its neighbor. Iran did not attack the UAE or its neighbors, instead, it targeted US military bases in those countries. This is a legitimate form of self defense because there is no guarantee that the US will not use those military bases in the future to attack Iran

If the UAE and other Gulf states do not allow the US to establish military bases there, there will be no attack against them. The UAE understand this very well, and that is why they have not retaliated against Iran.

[YOSHIE]

What do you think will be the implications of this moved?

If the United Arab Emirates (UAE) no longer joins the OPEC organization, of course there will be no one left who can maintain the stability of the global oil market, Venezuela has collapsed, they are also in OPEC, Iran, Iraq may no longer care about OPEC. that is the US's real goal, they want to control the world oil market, under US control.

You can see for yourself that the countries that were members of OPEC were all destroyed by the US, currently Iran, Venezuela are finished, Iraq is in the hands of the US, Russia is not involved as an OPEC member only as a non-OPEC oil producer, now if the UAE leaves, Of course we don't know for sure what will happen to global oil prices, this situation makes it possible for oil to reach $200 per barrel, perhaps.

[abhiseshakana]

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

There is no war between Iran and its neighbor. Iran did not attack the UAE or its neighbors, instead, it targeted US military bases in those countries. This is a legitimate form of self defense because there is no guarantee that the US will not use those military bases in the future to attack Iran

If the UAE and other Gulf states do not allow the US to establish military bases there, there will be no attack against them. The UAE understand this very well, and that is why they have not retaliated against Iran.

I think most country which involved on Gulf conflict caught on security dilemma. Many Gulf country feel threatened by Iran as a regional revisionist, US exploits that fear to maintain influence by its military presence and act as guarantor of regional order, Iran feels threatened by many US bases in Gulf country as existential threat, it create a cycle of mutual suspicion which mean regional security structure which make conflict remain alive. We see regional escalation easier happen in there and small country become proxy war arena due to these cycle. all parties feel defensive but each actions perceived as offensive by other. Actually without US presence, tension are real in gulf region, Iran and many Gulf country have structural rivalvy for many factor involved such as sunni shia conflict, relation with Israel, competition on control of persian gulf, etc.

[coin-investor]

As they have decided to leave OPEC, they can now pump as much oil as they can, which will definitely lower the prices for the rest of the world, and after this, they will be the stronger leaders in the global energy market for a long period of time.
Now they will be independent and more flexible in the global market.

The cartel brought by OPEC made countries like ours suffer from high inflation and a poor economy because we are too reliant on oil coming from OPEC at the price they want. With the UAE now an independent countries can enjoy a much lower price.
If another OPEC member were to leave the organization, many countries would benefit greatly.

[coupable]

UAE has suffered more damages in this war then Saudia Arabia because Iran has carried out more attacks on UAE then Saudia Arabia. There were already differences between these two countries and UAE has taken this as an opportunity to leave alliance of Saudia Arabia in OPEC. The reason is very obvious that UAE want to increase his oil production to cover damages due to this war. UAE also want to get rid of influence of Saudia Arabia because Saudia has not done much to help UAE in this crisis.

I don't expect the UAE decision to leave OPEC is because of the Saudi Arabia by any mean. The problem between the two countries is because of other reasons not because of the level of damages from the Iranian airstrikes. Iran attacked the UAE because it considers to be the extension of Israeli power in the region, in addition to previous problems about the two UAE islands occuppied by Iran.

The UAE suffered a lot during the recent war. And by keeping the membership in OPEC, it couldn't rise its production quota to cover the war losses. Its only option is to leave OPEC to product and sell more oil. Note that the UAE lost many investments due to investors run away from the country and exit their investments.

[Chessperson]

Might be just a negotiating tactic, as in they will reconsider after getting some concessions.

[passwordnow]

The cartel brought by OPEC made countries like ours suffer from high inflation and a poor economy because we are too reliant on oil coming from OPEC at the price they want. With the UAE now an independent countries can enjoy a much lower price.
If another OPEC member were to leave the organization, many countries would benefit greatly.

A country that doesn't have their own oil depot and refineries will definitely be affected by what OPEC does or its members. They control the supply they produce and that's why if they lessen what they will sell, the price will be higher because it creates a demand and supply matter for them. They know how to play monopoly on this and so with UAE withdrawing it. That might be another industry play in there but we have to wait wait and see what shall be the big impact of this to the countries they have been supplying their oils and while this war is still active.

[Iranus]

The cartel brought by OPEC made countries like ours suffer from high inflation and a poor economy because we are too reliant on oil coming from OPEC at the price they want. With the UAE now an independent countries can enjoy a much lower price.
If another OPEC member were to leave the organization, many countries would benefit greatly.

It should be noted that the UAE's decision to leave OPEC was in the country's national interest. They want to increase oil production to boost revenue, thereby financing their plan and developing the national economy. They did not leave OPEC and increased oil production to save the world from the energy crisis.

The UAE's crude oil production reaches 3 million barrel/day, accounting for about 4% of total global production. This will have an impact on oil price, but that impact will be insignificant. So, do not get too excited about this news and think it could push oil prices down to pre war low.

[bitgolden]

I am sure that UAE will not end up being "enemy" of anyone, they will do this to benefit themselves. There are no situations arising where it is going to be that simple for any of us, of course we are going to end up with many people being impacted on this, prices will also keep being volatile even more.

But there are no situations where Europe or rest of the world outside of UAE or USA will benefit from this and we just have to accept that USA is full on aggressive mode these days about oil again.

[shinratensei_]

Might be just a negotiating tactic, as in they will reconsider after getting some concessions.

Nah, UAE have already left OPEC so it's not a negotiating tactic and since U.S. has been opposing OPEC and gulf states are U.S. leaning countries for the most part, I doubt there will be concessions.
More likely scenario is UAE pumping out more oil hence more profit and nothing happens.

[Alpen]

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

That said, if the war in Iran ends, do you believe the attacks on the UAE would continue. It wouldn't. Though it is obvious that the relationship between Iran and their Gulf neighbors has been strained and they must be ready to protect themselves better and maybe even go on the offensive, when situations like this happens in the future.

Bro, I’m at a loss for words. Why don’t you go to the UAE right now and feel for yourself how your heart skips a beat every time the air raid sirens go off? After that, you can try explaining to me how 2,000 missiles and drones raining down on a country doesn't qualify as a "direct war."

The UAE is literally being bombed as we speak, yet the U.S. is claiming that the strikes on Iran aren't a reason to call off the ceasefire. If that’s not a conflict, I don’t know what is.

[Die_empty]

My point is this, there is no war between Iran and The UAE. The war is between The U.S. and Iran and those attacks on The UAE and other neighbors was in response to the U.S.'s attack on Iran, in order to force the U.S. to stop hitting them. That's why i said there is no direct conflict between Iran and UAE.

That said, if the war in Iran ends, do you believe the attacks on the UAE would continue. It wouldn't. Though it is obvious that the relationship between Iran and their Gulf neighbors has been strained and they must be ready to protect themselves better and maybe even go on the offensive, when situations like this happens in the future.

Bro, I’m at a loss for words. Why don’t you go to the UAE right now and feel for yourself how your heart skips a beat every time the air raid sirens go off? After that, you can try explaining to me how 2,000 missiles and drones raining down on a country doesn't qualify as a "direct war."

The UAE is literally being bombed as we speak, yet the U.S. is claiming that the strikes on Iran aren't a reason to call off the ceasefire. If that’s not a conflict, I don’t know what is.

The point is that since Iran cannot strike the US lands, they are targeting America's allies in the Middle East. Iran has always been at peace with its neighbours until the US began to attack them. The missiles and drones fired at the UAE were due to Israel and the US attacks.

Sadly, the UAE is suffering from a war it knows nothing about. I don't think the UAE will retaliate because it would escalate the conflict. The country would keep on protecting itself and seek pathways for peace. This is a lesson to other nations that there is a need to develop technology to protect ourselves from external aggression. The UAE would be disappointed that the US couldn't protect an ally from Iranian attacks.

[DrBeer]

The United Arab Emirates (UAE) is quitting the Opec and Opec+ groups of major oil producing nations next month after nearly 60 years of membership.

The UAE said its decision would help it meet growing global energy demand in the long term after recent investments to boost its production capacity.

https://www.bbc.com/news/articles/cj4pxwlr52yo

What do you think will be the implications of this moved?

UAE was the 3rd largest producing country in the world and leaving the alliance means that there could be a shift from once a powerful organization to the one that is being challenge by UAE.

In a sense they could alleviate the issue of oil right now, as they can increased their production without worrying about any cartel's cap. They might have to find another route though to deliver oil to some nation. But once the war is over and the straight of Hormuz is open, they could freely distribute oil to anyone.

A wonderful and long-awaited decision!
The problem is that OPEC/OPEC+ stopped pursuing their key goals, and some members didn’t even meet the agreed-upon limits or follow the rules of the game.
The question is: why should the UAE play by the rules and lose revenue when others couldn’t care less about those rules? It’s likely that the oil market will now become a true market-driven model for pricing and sales volumes. Not everyone will be happy about that, though
       

[bitgolden]

Why don’t you go to the UAE right now and feel for yourself how your heart skips a beat every time the air raid sirens go off? After that, you can try explaining to me how 2,000 missiles and drones raining down on a country doesn't qualify as a "direct war."

The UAE is literally being bombed as we speak, yet the U.S. is claiming that the strikes on Iran aren't a reason to call off the ceasefire. If that’s not a conflict, I don’t know what is.

The idea of "no direct war" is that it is not a war between UAE and Iran, it is a war between Iran and UAE, and because UAE has American military bases, they are involved indirectly.

Doesn't mean that it's not a war, it just means that for example if UAE came out tomorrow and said that "in this war we are against USA and will help our neighbour Iran" then suddenly all of the sirens would fall silent. That will not happen, but that is the proof that it is indirect, they are hit BECAUSE they are allies with America.

[UmerIdrees]

UAE has suffered more damages in this war then Saudia Arabia because Iran has carried out more attacks on UAE then Saudia Arabia. There were already differences between these two countries and UAE has taken this as an opportunity to leave alliance of Saudia Arabia in OPEC. The reason is very obvious that UAE want to increase his oil production to cover damages due to this war. UAE also want to get rid of influence of Saudia Arabia because Saudia has not done much to help UAE in this crisis.

Well, the Saudia  Arab and the United states have been fully exposed in this war and UAE now understands that both of them aren't their friends but we're using them for their own benefits.

First it was Saudia Arabia who introduced OPEC so the oil supply remains limited and they can maintain certain minimum price levels. Secondly United States put military bases on their country to ensure their safety but when they were under attack by the Iran, US didn't come to help them. I guess now they will sell cheaper and more oil and invest in their own army.

[alani123]

Saidis have their pipeline and are able to transport fuels to the west without Iran hassling them through the strait of Hormuz whereas use is locked in the strait. So with the OPEC restrictions they were in a much worse position.

There is a war fought in the sidelines among gulf oligarchs even aside of Iran and the US. In the end, oligarchs had their status quo challenged and are now directing national resources against each other. All these mysterious hits between Saudi Arabia and UAE can't have all been Iran. Surely some hits were among the two states between each other trying to take advantage of the confusion and gain an advantageous position in the energy trade at the expense of the other.