Market Analysis: UAE's Exit from OPEC Raises Concerns About the Alliance's Collapse as Other Countries May Follow Suit
Svmuu News The United Arab Emirates' sudden decision to withdraw from OPEC has exposed internal rifts within the oil-producing alliance. Andy Lipow, President of Lipow Oil Associates, said: "If countries that adhere to quotas become fed up with those that don't, we may see more withdrawals, which could ultimately render OPEC meaningless." Countries such as Qatar, Ecuador, and Angola have previously left the organization, citing dissatisfaction with quotas or shifts in national priority strategies. Lipow noted: "The UAE is neither the first nor will it likely be the last." Analysts pointed out that some countries dissatisfied with OPEC+ restrictions may consider giving up their membership. Matt Smith, Chief Oil Analyst at Kpler, listed Kazakhstan as a key candidate. "Kazakhstan has been significantly overproducing over the past year, so they might see this as an opportunity to leave the organization," Smith added, noting that Nigeria, Africa's largest crude oil producer, also deserves attention. Nigeria is increasingly focusing on domestic refining, which has reduced its reliance on export markets and may weaken its motivation to remain bound by quotas. Market observers said Venezuela is another possibility. With production recovering faster than expected and the potential for a more U.S.-friendly political environment, the country may seek greater flexibility. (Jin Shi)
Source:Odaily · Source Link
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