Trump claimed that the UAE's exit from OPEC would crash oil prices, but the market is reacting differently
Kyiv • UNN
Donald Trump stated that the UAE's withdrawal from OPEC would lower fuel costs. However, the market responded with Brent oil prices rising to 2022 record highs.
US President Donald Trump stated that the United Arab Emirates' decision to withdraw from OPEC will help lower energy prices amid the war surrounding Iran. This was reported by Bloomberg, according to UNN.
Details
"I think it's great (the UAE's withdrawal from OPEC - ed.). It's good for bringing down the price of gasoline, oil, and everything else,"
According to him, the UAE's exit from the cartel could ease pressure on the fuel market, where prices have soared due to the escalation in the Middle East.
Market Reaction
However, the market reacted contrary to expectations. Oil prices continued to rise, with Brent crude reaching its highest level since 2022.
UAE announced withdrawal from OPEC and OPEC+28.04.26, 15:36 • 27236 views
Analysts point out that the situation in the Strait of Hormuz remains the key factor affecting global supplies. As long as this route remains blocked, the impact of OPEC decisions on prices is limited.
Geopolitical Factor
Trump also stated that the US would keep the strait closed until Iran agrees to a new nuclear deal.
The UAE announced its withdrawal from OPEC, which is set to take place next month. This decision could weaken the organization's influence on the oil market amid supply disruptions caused by the war involving the US and Israel against Iran.
The move is also linked to long-standing tensions between the UAE and Saudi Arabia regarding production quotas.
"He probably wants to go his own way,"