🇦🇪🇺🇸 The UAE leaving OPEC is a major blow to the cartel's pricing power. Here's what it actually means. - The UAE is OPEC's second-largest producer and can now pump freely with no output restrictions - Good for consumers in the short term: more supply, downward pressure on prices - Less clear for U.S. producers: cheaper oil globally means lower profits for Big Oil - The U.S. is energy independent but still imports roughly a third of its oil, including heavier crudes from the Middle East that American light crude can't replace - The world was already oversupplied before the Iran war, so it's unclear if long-term demand supports UAE's extra production - The bigger picture: the Iran war is permanently reshaping global energy supply chains and the UAE exit may not be the last domino to fall Source: CNN Picture: @abdoulaahmad
