The UAE's decision, after nearly 60 years of membership, is seen as a potential death knell for the oil cartel.

The United Arab Emirates (UAE) is quitting the Opec and Opec+ groups of major oil producing nations next month after nearly 60 years of membership.

Opec was formed in 1960 by five countries - Iran, Iraq, Kuwait, Saudi Arabia and Venezuela - to defend the interests of major oil exporters by coordinating production to ensure steady revenue for its members.

  • Deconceptualist@leminal.spaceEnglish
    5·
    25 days ago

    This seems like kinda big news. Can someone informed explain more? As I understand UAE is this odd alliance of almost city-states around one edge of the Arabian peninsula and generally aligned with the US, but I could be wrong.

    Anyway, 4th biggest oil producer leaving OPEC after 60 years is historic. Is it the start of a trend or a one-off?

    • RamRabbit@lemmy.worldEnglish
      3·
      24 days ago

      The US has been a massive oil producer ever since the oil crisis in the 70s when we said ‘never again’. Ever since then, OPEC has been declining in strength. This, even if it is a one-off, is a huge blow to their power, and puts them significantly closer to functionally irrelevant.

      The entire point of the cartel is to coordinate supply restrictions to jack up the price of oil. But with the US, EU, Canada, and now UAE able to take advantage of their slowdown and just pump pump pumping, OPEC is the least relavent it has ever been. Guyana coming increasingly online in the next years and Venezuela coming back online will both be large blows to the cartel as well.