United Arab Emirates considering quitting OPEC – Canadian Investor

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United Arab Emirates considering quitting OPEC – Canadian Investor
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United Arab Emirates considering quitting OPEC CanadiansInvest

It would be a crippling blow to the influence of the organization on global oil markets

U.A.E. quitting OPEC would weaken the cartel. One of the reasons for OPEC’s recent success in managing the global crude market prices has been its cohesiveness and alliance with Russia. The U.A.E. opting out of OPEC could be a crippling blow to the organization’s influence on the global oil markets. But OPEC is a stumbling block to marketing its spare capacity volumes and the additionally planned crude output. Opting out of OPEC, and freeing itself from its export quotas, would help the country market its available, higher, volumes of oil which it is obligated to under the current OPEC quota.

The political and strategic bond that has kept Saudi Arabia and the U.A.E. together on all fronts – including OPEC –is slowly becoming unglued. When Saudi Crown Prince Mohammad bin Salman first emerged as the frontrunner to succeed current King Salman, it was the U.A.E. President, Mohammad bin Zayed, who was reportedly instrumental in getting him close to the Trump administration, especially the then first son-in-law Jared Kushner. That immensely helped M.B.S.

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