Overview
- The UAE, which announced Tuesday it will leave the producer groups effective May 1, says it will raise oil output gradually in line with demand.
- Oil prices jumped on the news, with Brent trading above $110 a barrel in recent sessions.
- The exit cuts OPEC’s roster to about 11 members and removes a sizable share of its capacity, weakening the cartel’s ability to steer supply.
- Export growth faces hard limits from the Strait of Hormuz disruptions and damage to regional energy facilities.
- An Abu Dhabi pipeline to Fujairah that can move 1.5 to 1.8 million barrels a day bypasses Hormuz, and the UAE is targeting about 5 million barrels a day by 2027.