The shock decision by the United Arab Emirates to quit OPEC blindsided its partners of six decades. Now the cartel will have to fight to stay relevant in a fast-shifting global oil market.
Officials from other member countries were left stunned on Tuesday, as longstanding tensions between Abu Dhabi and the group’s de facto leader Saudi Arabia culminated in the sudden announcement that OPEC’s third-largest producer will exit in a matter of days.
For OPEC and its partners, the departure will dilute their ability to manage oil prices by adjusting supply, while positioning the UAE as a wild-card player — and one that has long chafed against the constraints imposed by OPEC quotas — at a time of unprecedented upheaval in the global market.
