The UAE has contemplated exiting the OPEC cartel due to dissatisfaction with the oil quota assigned by the Saudi Arabia-led group, as stated by Navdeep Singh Suri, India’s former Ambassador to the UAE and Egypt. Suri revealed that the UAE expressed unhappiness with its 2.7 million barrels per day quota as early as July 2021, indicating a potential departure if the quota was not increased. Subsequently, the quota was raised to 3.4 million barrels, but the UAE aims to enhance its production capacity to around 5 million barrels daily, seeking autonomy from OPEC’s constraints.
In an interview, Suri discussed the potential implications of the UAE’s departure from OPEC on global oil markets. He highlighted the current energy scarcity scenario with the Strait of Hormuz blocked and oil prices surpassing $125 per barrel. Suri suggested that once normal oil flows resume, increased output from countries like the UAE could help stabilize oil prices, benefiting India. However, he cautioned that a weakened OPEC and more independent oil-producing nations might lead to heightened price volatility in the future.
Regarding the Iran-US tensions, Suri expressed India’s concerns about the situation’s impact on its economy. He criticized Iran’s actions, labeling its attacks on neighbors and blockade of the Strait of Hormuz, along with the US blockade, as illegal. The former Ambassador emphasized the need for a resolution to prevent further disruptions to global oil supply and pricing dynamics.
