INSTANT VIEW-UAE to leave OPEC and OPEC+ oil producer groups

LONDON, April 28 - The United ​Arab Emirates said ​on Tuesday it quit ‌OPEC and ​OPEC+, dealing a heavy blow to the oil exporting groups and ‌their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy ‌shock and unsettled the global economy.

LONDON, April 28 - The United ​Arab Emirates said ​on Tuesday it quit ‌OPEC and ​OPEC+, dealing a heavy blow to the oil exporting groups and ‌their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy ‌shock and unsettled the global economy. Here are some analyst ‌reactions to the news.

JORGE LEON, ANALYST AT RYSTAD: "The UAE withdrawal marks a significant shift for OPEC. Alongside Saudi Arabia, ⁠it ​is one ⁠of the few members with meaningful spare capacity—the mechanism through which ⁠the group exerts market influence."

"While near-term effects may be muted ​given ongoing disruptions in the Strait of Hormuz, ⁠the longer-term implication is a structurally weaker OPEC. Outside the group, ⁠the ​UAE would have both the incentive and the ability to increase production, raising broader questions about ⁠the sustainability of Saudi Arabia’s role as the market’s central ⁠stabiliser — and ⁠pointing to a potentially more volatile oil market as OPEC’s capacity to smooth supply ‌imbalances ‌diminishes." (London energy team, editing by ​Louise Heavens)