UAE's OPEC Exit to Boost Asian Energy Security
The United Arab Emirates, the world's sixth-largest oil producer, plans to increase production to 5 million barrels per day after exiting OPEC, freeing itself from production caps. This move is expected to structurally benefit Asian import-heavy economies like Japan, India, and South Korea by lowering oil prices in the long term, despite near-term pain from high prices. Global oil prices surged on Wednesday, with Brent crude reaching $111 a barrel and WTI approaching $100 a barrel, compared to around $70 and $65 respectively before the Iran war. UAE Energy Minister Suhail Mohamed Al Mazrouei attended the OPEC meeting in Vienna on December 6, 2019. Analyst Saraswat noted the positive long-term outlook for Asia.
Key facts
- UAE is the world's sixth-largest oil producer.
- UAE plans to produce 5 million barrels per day after leaving OPEC.
- Brent crude hit $111 a barrel on Wednesday.
- WTI approached $100 a barrel on Wednesday.
- Before the Iran war, Brent was around $70 a barrel.
- Before the Iran war, WTI was about $65 a barrel.
- UAE Energy Minister Suhail Mohamed Al Mazrouei attended OPEC meeting in Vienna on December 6, 2019.
- Analyst Saraswat said the exit is structurally good news for Asian economies like Japan, India, and South Korea.
Entities
Institutions
- OPEC
- Reuters
Locations
- UAE
- Asia
- Japan
- India
- South Korea
- Vienna