CNBC Daily Open: UAE leaves OPEC adrift
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Andrey Rudakov | Bloomberg | Getty Images
Hello, I’m Katie Foley writing to you from London.
UAE’s shock exit from OPEC is reflected in the markets. But there are a number of other trends at play for investors today: some earnings, a series of interest rate decisions and a drastic change at the Fed.
What you need to know today
And finally…
The UAE’s departure from the OPEC oil cartel is not unprecedented. Who could be next?
The United Arab Emirates’ shock decision to leave OPEC is reverberating across global energy markets and exposing cracks in the powerful oil cartel as production quotas risk prompting other members to follow suit.
“UAE’s exit is another chapter in the group’s changing membership,” said Andy Lipow, president of Lipow Oil Associates. “If countries that meet their quotas become disgusted with those who don’t, we could see additional outflows that could neutralize OPEC as a cartel,” he told CNBC via email.
Countries such as Qatar, Ecuador and Angola left the group Citing frustration with quotas or changing national priorities in recent years. Angola left in 2024, while Qatar ended its membership in 2019.
—Lee Ying Shan
