This is big news! Will any other of the 11 members follow?
"... The UAE has 4.8 million barrels a day of production capacity but was capped at roughly 3.4 million under OPEC quotas. It is among the world’s lowest-cost producers. It can bypass the Hormuz blockade through overland pipelines. ...
Around April 18 and 19, UAE central bank governor Khaled Mohamed Balama met with Treasury Secretary Scott Bessent and Federal Reserve officials on the sidelines of the IMF and World Bank meetings in Washington ... He raised the possibility of a dollar swap line.
On April 21, President Trump said on CNBC that he would like to help the UAE if he could. On April 22, Bessent told the Senate that “many” Gulf and Asian allies had requested swap lines, describing them as tools “to maintain order in the dollar funding markets and to prevent the sale of U.S. assets in a disorderly way.”
On April 24, Bessent posted on X that “extending permanent swap lines can be a major first step in creating new U.S. dollar funding centers in the Gulf and Asia.” ..." (Source)
"The United Arab Emirates (UAE) has said it is quitting the Opec and Opec+ groups of major oil producing nations after nearly 60 years.
The UAE said the decision reflected its "long-term strategic and economic vision and evolving energy profile".
The decision is seen as a blow to the cartel with one analyst describing the exit as "the beginning of the end of Opec".
The Gulf state's energy minister said being a country with no obligation under the groups would provide more flexibility.
The UAE joined Opec in 1967 and its departure will leave the oil cartel with 11 members. ...
"With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members." ..."
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