Moscow, Russia. Finance Minister Anton Siluanov said the United Arab Emirates’ decision to leave OPEC could lead oil producers to increase output, potentially lowering global prices in the future.
Russia’s response to reported UAE exit
Siluanov said Russia had learned that the United Arab Emirates was leaving OPEC, and that this would allow the country to produce as much oil as its capacity permits and bring it to market.
His remarks were described as Russia’s first reaction to the UAE’s exit. Russia is a member of the OPEC+ group and has been coordinating policy with OPEC members, and maintains strong ties with both the UAE and OPEC leader Saudi Arabia.
Impact on supply and prices
Siluanov said that if OPEC countries pursue uncoordinated policies after the UAE’s exit and produce as much oil as they want within their capacities, prices would fall accordingly.
He also said current oil prices were being supported by the blockade of the Strait of Hormuz, and that his expectations of oversupply referred to a future situation in which passage through the strait reopens.
How do you think changes in OPEC coordination could affect global oil prices?
