Trump Hails UAE Exit From OPEC, Says It Will Help Lower Oil Prices

Source

Korea Economic Daily

Summary

Trump said the UAE's exit from OPEC would "ultimately be a good thing for lowering gasoline prices and the price of everything."
The departure of the UAE, OPEC's third-largest oil producer, could deal a major blow to the oil cartel that Saudi Arabia has led for 60 years.
The UAE's independent path, backed by its ample capacity to raise output, could weaken OPEC's market dominance and lead to a long-term decline in oil prices.

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President Donald Trump publicly welcomed the United Arab Emirates' decision to leave OPEC.

At the White House on April 29, Trump called the UAE's withdrawal from the Organization of the Petroleum Exporting Countries "a great thing" and said it would ultimately help lower gasoline prices and "the price of everything," according to CNBC and other outlets.

He also praised UAE President Sheikh Mohammed bin Zayed Al Nahyan as "a very smart person" and said he seemed to want to go his own way.

Trump has repeatedly denounced OPEC as a cartel that exploits the world. Because he has argued that Middle Eastern countries should keep oil prices low in return for US security support, the UAE's move is also being interpreted as a win for Washington.

The UAE announced a day earlier that it would withdraw from both OPEC and OPEC+ — the alliance of OPEC and non-member oil producers — effective May 1. The exit of the UAE, OPEC's third-largest oil producer, could deliver a major blow to the oil cartel that Saudi Arabia has led for 60 years.

The UAE's departure is set to weaken OPEC's grip on the market. If the country, which has substantial spare production capacity, pursues an independent course, it could put downward pressure on oil prices over the longer term.

Han Kyung-woo, Hankyung.com reporter, case@hankyung.com