Amidst the ongoing conflict between America and Iran, the United Arab Emirates (UAE) has decided to withdraw from OPEC and OPEC+, the organization of oil producing countries. The UAE said that considering the economic outlook and the changing energy scenario, it decided to withdraw from this alliance after 60 years. OPEC is an alliance (cartel) of major oil-producing countries that coordinates production policies to influence global oil supply and prices.

UAE out of OPEC

UAE said in a statement that it is also withdrawing from OPEC+. Russia is also included in OPEC+. This step is being considered a big blow for OPEC and its key member Saudi Arabia. This group collectively produces about 36% of the world’s oil and controls about 80% of oil reserves globally.

The UAE has long been demanding higher production quotas within OPEC, as it wanted to expand its production capacity beyond the limits set by the cartel. OPEC was founded in 1960 by Saudi Arabia, Iran, Iraq, Venezuela and Kuwait. UAE joined it after 7 years. The UAE is among the world’s top 10 largest oil producers and contributes about 3% to 4% of global oil production.

OPEC will be affected due to UAE’s exit

Experts believe that due to UAE’s exit, OPEC has lost about 15 percent of its production capacity and has also lost one of its most disciplined (rules following) members. According to the latest OPEC data, the UAE produces about 2.9 million barrels of oil every year. At the same time, the production of Saudi Arabia, the de facto leader of OPEC, is about 9 million barrels of oil.

It will be difficult for Saudi Arabia to keep the remaining OPEC members united and it will have to bear most of the burden of internal compliance and market management alone. Other members of OPEC can also follow the same path. This situation reflects a fundamental geopolitical reshaping in West Asia and global oil markets. Now this alliance includes countries like Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, Congo.

What impact will UAE’s decision have on India?

With UAE’s exit from OPEC, questions are also being raised that what effect will it have on the world and India? First, due to the situation on Hormuz due to the Middle East war and now due to this decision of UAE, there are fluctuations in the prices of crude oil. However, it is too early to say whether this will be a relief for countries like India. If UAE increases oil production then the price of oil will reduce.

India-UAE relations have evolved into a major strategic partnership over the last few years. UAE has emerged as India’s third largest trading partner and a major source of Foreign Direct Investment (FDI).

Also read: Good news for India from Libya! Gas and oil reserves found, how much stake does Oil India have?

Due to the ongoing war in Iran and increasing tension in the Middle East, there is a huge rise in the prices of crude oil. Recently, the price of oil in the global market had reached around $120 per barrel. It is still trading above $100 per barrel. This situation has increased the pressure on the economy of many countries, but Russia is getting a big economic benefit from it. Due to tension, the movement of ships through the Strait of Hormuz has been affected. This route is very important because about 20 percent of the world’s total oil trade passes through this route. Due to less supply, oil prices have increased rapidly in the market.

According to Kepler’s report, Russia is currently selling its oil at a premium price. Due to this, he is earning additional income of about 150 million dollars every day. It is estimated that if this situation continues then by the end of this month Russia’s earnings may reach about 4 billion dollars. Before the war started, Russian oil was being sold at a discount in the international market, but as soon as the supply through the Strait of Hormuz was affected, the demand for Russian oil increased rapidly. Meanwhile, Donald Trump has given 30 days exemption to some countries including India to buy Russian oil. However, Scott Besant says that Russia will not get much economic benefit from this.

Russia’s Ural crude price increases

According to oil market data, the price of Russia’s Ural crude has increased by almost 50 percent since the start of the war. According to shipping data, in February, Russia was sending about 3.18 million barrels of oil daily by sea, which increased to about 4.56 million barrels in March. Earlier, due to the sanctions of Western countries, Russia had to sell its oil about $ 10 per barrel cheaper than Brent Crude Oil, but now the situation has changed and Russian oil is being sold at a premium of about $ 5 per barrel.

Oil shortage in many countries of Asia

Due to the war in the Middle East, the concern about oil shortage has increased in many countries of Asia. In such a situation, countries like Pakistan, Bangladesh and Thailand are also considering buying Russian oil. Till now, about 93 percent of Russia’s marine oil exports have gone to China, India and Turkey. A rise in oil prices was again seen in the international market on Friday (13 March 2026). Brent crude oil closed at $ 103.1 per barrel, up 2.67 percent, while West Texas Intermediate rose 3.11 percent at $ 98.71 per barrel.

America attacks Kharg Island

Meanwhile, America has targeted some military bases of Iran in Kharg Island. Donald Trump has warned that if Iran does not stop its activities, more attacks could be carried out on its oil facilities. Experts say that if tensions increase further, oil prices may go up further in the future.

Crude Oil Price Fall Today: Amidst the tension in the Middle East, a day earlier i.e. on Tuesday, there was a big fall in the prices of crude oil in the international market. Due to the situation arising out of the Iran-Israel dispute and the closure of the Strait of Hormuz, Brent crude oil reached $ 117 per barrel intraday on Monday. However, on Tuesday morning it was seen falling by about 10.17 percent and trading at $ 85.15 per barrel.

A day before this, in the last trading session, oil prices had reached such a high level for the first time after the year 2022. Therefore, the market has also got support from this sudden decline. Let us know why such a sharp decline has been recorded?

Market softens after Trump’s statement

Donald Trump’s recent signal is being believed to be the reason behind this weakness in oil prices. Trump has indicated that the ongoing tension between America and Iran may end soon. Meanwhile, West Texas Intermediate (WTI) crude also fell by about 10.06 percent to $ 85.25 per barrel.

According to reports, meanwhile, a phone conversation took place between Vladimir Putin and Trump, which is being seen as an attempt to calm the situation.

Priority of oil companies regarding LPG supply

Bharat Petroleum has said that the supply of domestic LPG is being given first priority. Due to the global situation, pressure on the supply of fuel and LPG has increased. Therefore, LPG production is being increased to ensure that there is no shortage of gas in homes. LPG will also be provided to hospitals, schools and other important institutions as per the requirement.

A committee of oil companies has been formed to look into the demand from the non-domestic sector. Which includes officials of Indian Oil, Bharat Petroleum and Hindustan Petroleum. This committee will decide how much LPG should be given to which sector, because the supply of non-domestic LPG is largely dependent on imports and in such a situation it is not possible to meet every demand.

Also read: Annual consumption of 3 crore tonnes of LPG in India, know what steps have been taken till now after Iran War