T🚨 Let me explain what the UAE is actually doing here..
Everyone sees the headline:
“UAE exits OPEC and OPEC+.”
But the real story is underneath it.
For years, Abu Dhabi has been building more oil capacity.
EIA says ADNOC targeted 5 million barrels per day of crude capacity by 2027.
That is a massive national bet.
But OPEC works by asking producers to not use all their capacity.
That is the deal:
You leave barrels in the ground.
Prices stay supported.
Everyone pretends this is “market stability.”
That works if every major producer accepts the sacrifice.
The UAE just stopped accepting it.
The official language is polite:
“Long-term strategic and economic vision.”
“Gradual and measured production.”
“Aligned with demand.”
Translation:
We are done letting a cartel cap the asset we spent years building.
And the timing matters.
Hormuz is disrupted.
EIA says about 20 million barrels per day moved through that chokepoint in 2024.
That is about one-fifth of global petroleum liquids consumption.
So UAE can say this is about helping supply.
Not rebellion.
Not greed.
Not a fight with Saudi Arabia.
Just “market needs.”
That is the clever part.
The UAE gets more freedom.
Oil buyers get the hope of more supply.
OPEC keeps the logo but loses discipline.
The cartel is not dead.
But one of its most important members just proved the rules are optional.
if you're not following me you're finding out about this 48 hours late from someone who read my post..
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