Crude futures slid more than 2% on Friday after reports emerged that the United Arab Emirates is considering leaving the Organization of the Petroleum Exporting Countries (OPEC). According to a report by the Wall Street Journal, the Middle Eastern country has pushed the cartel to allow it to produce more oil and Emirate officials are now having an internal debate on whether to leave OPEC amid disagreements over output cuts with Saudi Arabia. International benchmark Brent for settlements in May dropped 2.36% to sell for $82.36 per barrel at 9:01 am ET and West Texas Intermediate (WTI) for April delivery slid 2.59% to go for $75.92 per barrel at the same time.NN: nothing to get excited about here…
UAE Officials Say Privately No Plans to Leave OPEC
The United Arab Emirates has no plans to leave the OPEC oil alliance, according to officials speaking on condition of anonymity. The Wall Street Journal reported earlier that a growing rift with Saudi Arabia means the UAE is having internal discussions about quitting the producer group, a move that could potentially leave it free to lift output.
The UAE has said publicly and privately it is sticking to the current OPEC deal for at least this year.
The major producer has for some years been contemplating what alliances best suit its long-term interests, as the country seeks to monetize recent expansion in its production capacity. In a previous OPEC+ dispute with Saudi Arabia, the group’s policy decision was held up for weeks, though in the end a compromise was found. NN:It will be no different this time/