The United Arab Emirates, OPEC’s 3rd largest oil producer, announced it will leave OPEC and OPEC+
The move would free the UAE from cartel production quotas, allowing it to pump oil at full capacity, set its own export strategy and price crude without group restrictions.
That could pave the way for higher UAE output, stronger state revenues and downward pressure on global oil prices.
Lower prices and increased supply would likely be welcomed by President Trump, who has long criticized OPEC production limits and called for cheaper energy.
UAE VS OPEC?
Iran attacked UAE for weeks.
Hormuz got blocked. UAE’s oil exports collapsed 44%.
OPEC members said nothing.
So UAE said: “We’re done.”
In 1985-1986, Saudi Arabia, similarly, broke from OPEC production quotas by flooding the market with cheap oil, crashing prices from around $30 a barrel to under $10.
The result?
It devastated the Soviet Union’s oil-dependent economy, contributed to their fiscal collapse, and is considered one of the factors that accelerated the Soviet Union’s eventual downfall.
With the naval blockade in place, the UAE is now working with Trump & Netanyahu to expedite the Islamic regime’s economic collapse and downfall.