Senators See UAE’s OPEC Withdrawal as Boost for U.S. Energy Interests

Lawmakers said that the United Arab Emirates’ decision to withdraw from the Organization of Petroleum Exporting Countries could yield positive economic benefits for the U.S. and is a sign that the regional alignment of the Gulf countries is shifting.

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“The political and economic predicates for this move have been building for a while, and events of the last two months accelerated the decision,” said Jonathan Ruhe, a fellow at the Jewish Institute for National Security of America.

Ruhe noted that the UAE had long been constrained by OPEC production quotas, often “bearing the brunt” of cuts while other members failed to comply.

“All of this foregone revenue could have been spent on further diversifying the Emirati economy and pursuing ambitions to be a world leader in AI and other technologies,” Ruhe said, adding that tensions were compounded by political strains with Saudi Arabia over regional issues including conflicts in Yemen, Sudan and Israel.

“The UAE’s spare production capacity is at an even greater premium now, and it can bypass the Strait of Hormuz with some of these seaborne exports. And with no production cap, it can invest more in additional Hormuz bypass routes,” he added. 

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 Read the full article in Jewish Insider.