The UAE, a core founding member and pillar of OPEC, has announced its withdrawal from this oil cartel. This move marks the collapse of the traditional energy alliance, officially ushering in an era of chaotic oil competition—countries will now be unrestricted in their oil production and exports, producing and selling as much as they can.
Trump's actions deployed in the Strait of Hormuz have yielded dismal results, giving rise to this new, disorderly energy order: every nation pursuing its own interests, engaging in constant power struggles, with long-standing strategic alliances crumbling one after another. At this point, the fragile OPEC+ system has already begun to teeter like a house of cards.
The UAE has long been dissatisfied with Saudi Arabia’s dominant forced production cuts aimed at maintaining oil prices within OPEC’s core. With its oil extraction capacity significantly increased, the UAE seeks to unleash production to capture a larger share of the global market. Freed from the constraints of the alliance, it can now freely expand output, maximize profits from oil exports, and no longer comply with collective production limits.
The long-standing unified production cuts and international oil price control mechanisms of OPEC+ have been shattered, rendering the monopoly coordination system ineffective. The world may now enter a phase of uncontrolled production increases, the international oil pricing regime collapsing, and pure market-driven, self-serving oil competition potentially replacing the previous collusive monopolies.
Original source: toutiao.com/article/1864085164817484/
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