UAE leave OPEC amid Hormuz crisis – Saudi Arabia faces fresh blow
### Gulf Tensions Trigger a Shock Exit: UAE Walks Out of OPEC The United Arab Emirates has announced its departure from the Organization of the Petroleum Exporting Countries, citing the rapidly deteriorating security situation in the Strait of Hormuz. The move, coming amid heightened Iran‑Israel hostilities, threatens to trim OPEC’s collective output by roughly half a million barrels per day, adding fresh volatility to an already jittery market. **Key Takeaways** - **Strategic withdrawal:** The UAE cites escalating threats to navigation in the Strait of Hormuz as the primary reason for leaving OPEC. - **Output impact:** Analysts estimate a reduction of about 0.5 million bpd from OPEC’s total capacity, tightening global supply. - **Market reaction:** Energy traders have responded with heightened price spreads and increased hedging activity as uncertainty spikes. - **Saudi Arabia’s dilemma:** The loss of the UAE’s output intensifies pressure on Saudi Arabia to compensate, potentially reshaping the kingdom’s production strategy. - **Geopolitical ripple:** The decision underscores how regional security flashpoints can swiftly reshape the architecture of the global oil market. - **Long‑term implications:** If the Hormuz corridor remains contested, further realignments among OPEC members could follow, prompting a reassessment of collective output targets. [Read Full Article](https://news.ababil360.com/uae-leave-opec-amid-hormuz-crisis-saudi-arabia-faces-fresh-blow/) #UAE #OPEC #StraitOfHormuz #OilSupply #EnergyMarkets #SaudiArabia #Geopolitics #OilPrices #MiddleEast #newsababil360
