BREAKING: The United Arab Emirates has announced it will withdraw from OPEC after more than 50 years, with the move set to take effect May 1.

[Cellblock2429]

Well, it looks like this will break the back of OPEC and give us all a break at the gas station. It won't happen overnight.


The decision would allow the UAE to boost oil production without OPEC quota limits — a major shift that could impact global oil prices.The move is also being viewed by some as a potential win for President Trump, who has repeatedly accused OPEC of inflating prices and “ripping off the rest of the world.”

 

[pknopp]

OPEC isn't the problem at the pumps.

 

[Cellblock2429]

OPEC isn't the problem at the pumps.

/----/ Oil prices go up; gas prices go up immediately. Oil prices go down; gas prices go down very, very slowly.

 

[pknopp]

/----/ Oil prices go up; gas prices go up immediately. Oil prices go down; gas prices go down very, very slowly.

Oil prices go up over "exaggerated exuberance ".

OPEC's definition of markets going up just because they want to.

Remove the "Hedge Fund" money and things become far more steady.

 

[eagle1462010]

They are ditching OPEC and will no longer be limited on production by Saudi Arabia and Iran

Yuge hit to OPEC holding the world over a barrel

 

[Admiral Rockwell Tory]

/----/ Oil prices go up; gas prices go up immediately. Oil prices go down; gas prices go down very, very slowly.

Gas jumped 30 cents here in TN. As long as Iran suffers, I don't really care!

 

[Papageorgio]

Short term this will impact little however UAE is working to double its output to 5 billion barrels which lessens OPEC’s positioning and power. Kazakhstan maybe an OPEC+ defection soon as they are looking out for their best interests as well,

Long term this will be a benefit as it will weaken OPEC, allow more oil prod and bring down oil prices, it also shows cracks in OPEC’s stranglehold. Iran spurred this on by them trying to control the Straits of Hormuz.

At least there is a positive to the war.

 

[pknopp]

Short term this will impact little however UAE is working to double its output to 5 billion barrels which lessens OPEC’s positioning and power. Kazakhstan maybe an OPEC+ defection soon as they are looking out for their best interests as well,

Long term this will be a benefit as it will weaken OPEC, allow more oil prod and bring down oil prices, it also shows cracks in OPEC’s stranglehold. Iran spurred this on by them trying to control the Straits of Hormuz.

At least there is a positive to the war.

They could pump 10 billion and it's not going to bring prices down.

 

[Cellblock2429]

They could pump 10 billion and it's not going to bring prices down.

/----/ Nonsense.
If you meant 10 million additional barrels (effectively doubling their output and flooding the market), the impact would be catastrophic for prices:

• Price Collapse: Global oil prices would likely crash toward zero or even go negative, similar to what was briefly seen during the 2020 lockdowns. The world simply doesn't have enough storage tanks to hold that much excess oil.
• The "Hormuz" Factor: Currently, in April 2026, market prices are heavily influenced by the Strait of Hormuz situation. While UAE has increased exports via its west coast to bypass the strait, total regional supply losses are estimated at over 13 mb/d.
• Market Impact: Even if UAE maximized its spare capacity (roughly 2 million barrels of "extra" room), it would help stabilize prices, which are currently forecast to average $86/bbl (with potential spikes to $115/bbl due to the ongoing conflict).

 

[pknopp]

/----/ Nonsense.
If you meant 10 million additional barrels (effectively doubling their output and flooding the market), the impact would be catastrophic for prices:

• Price Collapse: Global oil prices would likely crash toward zero or even go negative, similar to what was briefly seen during the 2020 lockdowns. The world simply doesn't have enough storage tanks to hold that much excess oil.
• The "Hormuz" Factor: Currently, in April 2026, market prices are heavily influenced by the Strait of Hormuz situation. While UAE has increased exports via its west coast to bypass the strait, total regional supply losses are estimated at over 13 mb/d.
• Market Impact: Even if UAE maximized its spare capacity (roughly 2 million barrels of "extra" room), it would help stabilize prices, which are currently forecast to average $86/bbl (with potential spikes to $115/bbl due to the ongoing conflict).

Back when oil hit near $150 OPEC was pumping full out. Tankers were sitting full offshore because there was nowhere to unload them.

OPEC noted that $150 was the "irrational exuberance" of the markets.

 

[Papageorgio]

They could pump 10 billion and it's not going to bring prices down.

Totally missed the point, but you usually do.

 

[pknopp]

Totally missed the point, but you usually do.

There is no point or you would have tried to make it.

 

[Papageorgio]

There is no point or you would have tried to make it.

You have no reading comprehension other wise you wouldn’t consistently make stupid comments.

 

[Lisa558]

Gas jumped 30 cents here in TN. As long as Iran suffers, I don't really care!

Yup. If it means Iran doesn’t get nukes, I’d pay double.

 

[pknopp]

You have no reading comprehension other wise you wouldn’t consistently make stupid comments.

Again, just lashing out. No country is just going to pump just to pump. It's far more expensive to store oil above ground than it is to leave it until needed.

No country is going to go to more expensive measures to flood a market.

 

[Frankeneinstein]

The decision would allow the UAE to boost oil production without OPEC quota limits — a major shift that could impact global oil prices.The move is also being viewed by some as a potential win for President Trump, who has repeatedly accused OPEC of inflating prices and “ripping off the rest of the world.”

If I understand it correctly, OPEC countries and the U.S. have a contract the makes clear we will make sure their oil is delivered safely and they can only accept American dollars for their oil meaning other countries have buy dollars from us [a lucrative deal for us]...if U.A.E. drops out of OPEC they can then sell the oil to anyone they want and others would be forced to do the same and no one would have to accept dollars only...Sadaam tried it [france was trying to flip him] and we took him out...if OPEC breaks up you might see an inordinate number of oilers/tankers pirated and even sunk.

 

[Lisa558]

If I understand it correctly, OPEC countries and the U.S. have a contract the makes clear we will make sure their oil is delivered safely and they can only accept American dollars for their oil meaning other countries have buy dollars from us [a lucrative deal for us]...if U.A.E. drops out of OPEC they can then sell the oil to anyone they want and others would be forced to do the same and no one would have to accept dollars only...Sadaam tried it [france was trying to flip him] and we took him out...if OPEC breaks up you might see an inordinate number of oilers/tankers pirated and even sunk.

So now we have to watch out for the Samali pirates?!

I sense another movie coming up: Captain Phillips, Again.

 

[TimFitz]

/----/ Oil prices go up; gas prices go up immediately. Oil prices go down; gas prices go down very, very slowly.

So?

That's big oil.

Trumpsters love big oil.

Pay your tribute at the gas pump!

 

[Admiral Rockwell Tory]

If I understand it correctly, OPEC countries and the U.S. have a contract the makes clear we will make sure their oil is delivered safely and they can only accept American dollars for their oil meaning other countries have buy dollars from us [a lucrative deal for us]...if U.A.E. drops out of OPEC they can then sell the oil to anyone they want and others would be forced to do the same and no one would have to accept dollars only...Sadaam tried it [france was trying to flip him] and we took him out...if OPEC breaks up you might see an inordinate number of oilers/tankers pirated and even sunk.

Wow! That's the most bizarre theory I have read in a while. Are you sure you are not channeling a Democrat? That sounds like something that would come out of the mouth of Bernie or AOC!

 

[Admiral Rockwell Tory]

So now we have to watch out for the Samali pirates?!

I sense another movie coming up: Captain Phillips, Again.

Samali? Who is that?