By Admin 
UAE’s exit from OPEC: The United Arab Emirates (UAE) on Tuesday (April 28) has announced to leave the Organization of Petroleum Exporting Countries (OPEC). Due to this, crude oil prices in the global oil market have reached their highest level in 3 weeks.
This step will be effective from May 1. UAE has taken this decision at a time when there is already an atmosphere of instability in the global oil markets due to the war between America and Iran.
How much have oil prices increased?
Today WTI crude has reached an intraday high of $ 100.36 per barrel. At the same time, Brent crude prices have also increased by more than 1.25 percent to reach $ 104.95 per barrel.
America benefits from UAE’s decision
The supply chain is already badly affected by the war in Iran and the resulting blockade of the Strait of Hormuz, due to which oil prices have also increased in the past. Now this decision to leave OPEC is likely to increase further pressure on prices.
After Qatar and Angola, UAE’s exit from OPEC shows that now the big oil producing countries want to set their own production limits so that prices can be more stable in future.
Here, experts believe that this decision of UAE will give unexpected geopolitical benefit to US President Donald Trump. America has long considered OPEC a ‘cartel’, which increases oil prices as per its own. The exit of big producing countries like UAE will weaken the organization’s hold on the market, which will strengthen America’s position in reshaping the global oil market.
Will Trump’s policy be strong?
Since, due to tension in Iran, there has been interruption in the supply of oil from Gulf countries. In such a situation, countries around the world are turning to American shale companies to meet their needs. American exporters are benefiting from this.
Here, UAE has good relations with America. In such a situation, it is possible that by leaving OPEC, UAE will come closer to America’s strategies instead of Saudi Arabia. This is in accordance with Trump’s energy policy because Trump wants OPEC’s monopoly in global energy markets to end.
What is OPEC?
OPEC is a powerful grouping of the world’s major oil producing countries, which was established in Baghdad in 1960. Its job is to control the prices of crude oil in the global market and manage the supply. OPEC ensures that oil producing countries get the right price for their oil. Its headquarters is in Vienna, Austria. After UAE, now OPEC mainly includes countries like Saudi Arabia, Iraq, Iran, Kuwait, Venezuela.
Impact of UAE’s decision on India?
This situation is no less than a challenge for India, which is heavily dependent on oil imports. The decision of UAE to withdraw from both OPEC and OPEC+ from May 1, 2026 has caused an upheaval in the global oil market. Due to this the prices have also crossed 100 dollars. Now it is obvious that imports will be expensive, which will increase the prices of petrol, diesel and LPG in the country, due to which the prices of many essential commodities will also increase.
If oil prices increase, the government may also have to give subsidy or reduce excise duty. This will increase the burden on the government treasury, which may lead to reduction in expenditure for other development works.
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