The United Arab Emirates’ decision to leave the oil cartel is a serious blow to the 65-year-old alliance that supplies about 40% of the world’s oil. The move would permanently weaken OPEC’s leverage over energy prices.
The Emirates is seeking independence and aims to increase production beyond its quotas gradually. Experts say the UAE is rushing to sell its reserves now, before the world switches to renewable energy sources and oil demand declines.
While the UAE’s withdrawal could lower prices in the long term, it is currently only theoretical. Due to Iran’s ongoing blockade of the Strait of Hormuz, Gulf oil is not available for export, further squeezing supply and driving up prices.
