UAE exits Opec and weakens oil alliance

Business

Dawn

The UAE has left Opec, ending nearly six decades in the group and weakening both Opec and Opec+, according to the article. The move removes a producer with the group’s second-largest spare capacity after Saudi Arabia, reducing an extra cushion for global oil markets during crises. The exit followed years of tension over output quotas, with the UAE allowed to produce roughly 3.2m barrels per day despite capacity above 4m bpd and plans to reach about 5m bpd by 2027. The article says markets may see little immediate effect because the Strait of Hormuz remains blocked, but a later output war could push prices lower.

Opec lost the UAE’s second-largest spare capacity.