We know in the aftermath of the subtraction of Nicolas Maduro from Venezuela that control of that country’s oil was Donald Trump’s raison d’etre all along. Now that the United Arab Emirates (UAE) has announced they’re leaving the Organization of Petroleum Exporting Countries (OPEC) this Friday, Trump can chalk up another oil victory. Perhaps oil mania was behind Trump’s Iran plan all along.
The UAE is going to increase its oil production, and in response, so is Saudi Arabia. The increased daily output of barrels of the sacred liquid will offset the loss of Iranian exports while Trump keeps his blockade of the Strait of Hormuz in place. The UAE doesn’t have to use the strait and Saudi Arabia has a pipeline, in addition to access to the Red Sea for shipments.
Another plus: Countries have begun buying oil from the U.S. while Hormuz is hammered shut by both Iran and Trump.
The UAE is also withdrawing from OPEC+, a larger coalition that includes Russia. OPEC itself was founded in 1960, largely in response to Western control of Middle Eastern oil supplies that began with Standard Oil.
The Emirates’ withdrawal is only the first piece in the puzzle to fall, observers fear. Other countries could use the UAE’s decision as a tipping point in their own relationship with the organization, which caps member countries’ production to control the price of oil.
