In a shock move, UAE leaves OPEC to gain control over its oil future

A win for US President Donald Trump?

The UAE’s exit represents a win for US President Donald Trump, who in a 2018 address to the UN General Assembly accused the organisation of, “ripping off the rest of the world,” by inflating oil prices.

Trump has also linked US military support for the gulf with oil prices, saying that while the US defends OPEC members, they, “exploit this by imposing high oil prices”.

Analysts said it was also positive for consumers and the broader economy.

“This opens the door for the UAE to gain global market share when the geopolitical situation normalises,” said Monica Malik, chief economist at ADCB. Jorge Leon, analyst at Rystad, noted the UAE’s significance as one of the few members of OPEC, apart from Saudi Arabia, with spare production capacity that allows it to add extra oil to the market.

“Outside the group, the UAE would have both the incentive and the ability to increase production, raising broader questions about the sustainability of Saudi Arabia’s role as the market’s central stabiliser,” he said.