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UAE To Leave OPEC Amid Hormuz Oil Crisis (apnews.com) 110

fjo3 writes: The United Arab Emirates announced Tuesday that it would exit the Organization of the Petroleum Exporting Countries (source paywalled; alternative source), or OPEC, along with the wider group of partners known as OPEC+, effective May 1, in what could be a blow to control over prices by the group, long led in practice by Saudi Arabia. The move "reflects the UAE's long-term strategic and economic vision and evolving energy profile" read an official statement carried by a UAE state news agency, as disruptions "in the Strait of Hormuz continues to affect supply dynamics."

[...] The UAE is the second Persian Gulf country to leave the group after Qatar terminated its membership in 2019. The UAE has been a member of OPEC since 1971. The latest departure leaves in place 11 core members: Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia and Venezuela.

UAE To Leave OPEC Amid Hormuz Oil Crisis

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  • by nealric ( 3647765 ) on Tuesday April 28, 2026 @01:07PM (#66116866)

    OPEC has just been a front for the Saudis for a very long time. Only they really have the ability to meaningfully meter output.

    Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Libya, Nigeria, and Venezuela all basically produce as much as they can regardless of OPEC. Their output is mostly determined by ability to attract investment, security (or lack thereof) and geopolitical obstacles (as in Iran). Kuwait and UAE have the ability to meter, but they are too small in total output to matter. Russia has informally worked with OPEC on quotas, but they have likely lost the ability to meter output now that Ukraine is attacking its export faculties.

    • OPEC has just been a front for the Saudis for a very long time.

      OPEC is a cartel. Cartels often have leaders. Cartels usually fail, loyalty/control eventual fades and self interest asserts itself.

    • by Anonymous Coward

      OPEC has just been a front for the Saudis for a very long time. Only they really have the ability to meaningfully meter output.

      Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Libya, Nigeria, and Venezuela all basically produce as much as they can regardless of OPEC. Their output is mostly determined by ability to attract investment, security (or lack thereof) and geopolitical obstacles (as in Iran). Kuwait and UAE have the ability to meter, but they are too small in total output to matter. Russia has informally worked with OPEC on quotas, but they have likely lost the ability to meter output now that Ukraine is attacking its export faculties.

      As soon as prices go up it becomes profitable to extract elsewhere diluting OPEC's market share. The difference between OPEC and other producers is the lag in response to market changes.

    • Qatar had left OPEC during its 2019 dispute w/ Saudi Arabia, Egypt, Emirates and Bahrein. Since then, they focused on LNG. Now, w/ the Emirates leaving it, OPEC is even more fractured. Countries that don't like OPEC cartel prices can deal w/ Emirates or Qatar, or even Russia or Iran, if they don't care about US trade relations

      Once the islamic regime in Iran falls, Iranian oil will be back on the world oil markets, lowering their prices. If and when the Ukraine war ends, Russian oil too can return onli

      • Once the islamic regime in Iran falls

        Right now the only thing that's certain is that the US Navy is scared of entering the Straight of Hormuz. HTH.

      • by AmiMoJo ( 196126 )

        Hopefully the move away from oil as fuel will have gained enough momentum by then that it never recovers.

        It would be cheaper to just do that, than to deal with the inevitable next oil shock.

  • And the Federal Reserve going to do if the PetroDollar crashes & burns? Go back to the gold standard? What other standard will they use?
    • This is already why the US went after Iran. Economic stability in disguise. Population growth is slowing to the point that Social Security and Medicare will collapse under its obligations unless we can just continue to inflate our way out of things. And inflation only works for the US because the dollar still has value outside of the US because people are trading with it and holding it.

    • I believe this is why immediet action was taken when Iran started using bitcoin in their transactions. A lot of people really don't understand how benwficial it is to the USA that crude sales are all done in USD as opposed to the currwncy the seller chooses.
  • That can't be a bad thing. Hopefully a race to the bottom for oil prices.

  • UAE ... would exit ... OPEC, along with the wider group of partners known as OPEC+ ...

    Is OPEC+ their streaming service? :-)

  • Fair enough, since they are no longer in the business of exporting oil.

    The Saudi's still export some, via their pipeline to the Red Sea.

    • by PCM2 ( 4486 )

      Fair enough, since they are no longer in the business of exporting oil.

      How do you figure that one? Oil and gas are about 30% of the UAE's GDP. They're something like the fourth-largest exporter worldwide. And leaving OPEC will allow them to increase production however they see fit, unrestrained by OPEC rules.

      • Then what is the other 70% of Emirates' GDP?

        • Then what is the other 70% of Emirates' GDP?

          You could have just looked it up

          The remaining 70–75% of the UAE's GDP (often referred to as the non-oil sector) is a highly diversified mix of industries led by trade, manufacturing, financial services, and construction. Recent data for 2024 and early 2025 indicates that the non-oil sector's contribution has hit historic highs, reaching approximately 77.3% of real GDP in the first quarter of 2025

  • Good (Score:4, Funny)

    by Bahbus ( 1180627 ) on Tuesday April 28, 2026 @05:24PM (#66117310) Homepage

    Fuck OPEC and fuck Saudi Arabia - bunch of useless cunts.

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