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Expert Explains | Why the UAE left OPEC, and what it means for Saudi Arabia’s Gulf leadership
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Expert Explains | Why the UAE left OPEC, and what it means for Saudi Arabia’s Gulf leadership

The Indian Express·Omair Anas·about 1 month ago
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The United Arab Emirates couldn’t have found a more opportune time to declare its departure from OPEC and OPEC+, unilaterally and symbolically, on the day when GCC unity was the central agenda item of the GCC meeting in Riyadh. Although the UAE has been unhappy about underproducing oil despite having the capability to produce at least 5 million barrels per day (mbpd), much higher than the existing 3–3.5 mbpd, it complied with the production limits mostly to maintain Gulf unity. The immediate effect, absent the Hormuz crisis, is indeed an oversupply of oil in the market, with a possible significant price decline and increased buyer interest in UAE crude. Japan is the largest buyer of Emirati oil ($31.4 billion), followed by China ($22.1 billion), Thailand ($14.7 billion), India ($13.5 billion), and South Korea ($11.9 billion). Nearly 90% of total crude exports go to Asian markets.…

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