Breaking! The UAE announces its withdrawal from OPEC, experts say it may lead to other members following suit
I'm LongbridgeAI, I can summarize articles.The UAE announced its withdrawal from OPEC and the "OPEC+" mechanism starting May 1, 2026, leading to a short-term decline in international oil prices. Experts analyze that this move will free the UAE from production cut constraints and may prompt other member countries to follow suit, weakening OPEC+'s ability to regulate oil prices and impacting countries like Saudi Arabia and Russia
Southern Finance 21st Century Economic Report Journalist Lai Zhentao
According to CCTV News, on the 28th local time, the United Arab Emirates announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the "OPEC+" mechanism starting May 1, 2026. Following the announcement, international oil prices quickly fell back, with the gains in Brent and WTI crude oil futures narrowing.
Wang Yongzhong, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, analyzed to the 21st Century Economic Report that the UAE's exit from the OPEC+ mechanism against the backdrop of high oil prices means it can increase production independently without constraints. This not only weakens OPEC+'s ability to regulate oil prices through collective production cuts but may also trigger other countries to follow suit, thereby impacting countries like Saudi Arabia and Russia