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Expert Explains | ‘Impact of UAE’s OPEC exit on oil market will be felt only in longer run’

The Indian Express·Anil Sasi·about 1 month ago
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Beginning May 1, the United Arab Emirates (UAE) will no longer be part of the Organisation of Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance. The UAE’s exit, announced Tuesday, comes at a time when global oil markets have been roiled by the war. It may not, however, have been directly influenced by the war alone, says Ajay Singh , an energy and shipping executive based in Tokyo. Singh, who is a former Shell and Japan Petroleum Corporation executive with considerable experience of West Asia, tells Anil Sasi that the decision signals a break from its Gulf neighbours, particularly Saudi Arabia, geopolitically. Edited Excerpts: Does the decision by the UAE to leave OPEC and OPEC+ have to do with the Iran war? I believe it is a strategic decision, not directly related to the war. There has been disagreement for several years between the UAE and other OPEC and OPEC+ members, particularly Saudi Arabia, which favoured curtailment of production in order to keep oil prices up.…

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