EU weighs benefits and risks of UAE exit from OPEC

The European Union is expressing concern over the United Arab Emirates’ decision to leave OPEC and the resulting weakening of the organisation, even as the move could offer short-term economic benefits for Europe as a major oil importer, a diplomatic source in Brussels told TASS.

According to the source, the UAE’s withdrawal “clearly weakens the cartel” and could increase global oil supply, potentially accelerating a decline in prices once the situation in the Strait of Hormuz stabilises. “This is beneficial for the European Union as a major consumer of oil,” the source said.

However, the diplomat emphasised that Brussels is uneasy about the broader geopolitical implications of the decision, which he suggested was taken under the influence of the United States. He drew a parallel with the European Union itself as a regional bloc that maintains strategic ties with Washington, warning that the “destruction of another important structure of the global order” raises concerns.

The source added that, despite any immediate energy advantages, the EU does not favour excessively low oil and gas prices over the longer term, as such a scenario could hinder the transition to alternative energy sources.

In this context, the diplomat said Brussels is likely to take a cautious approach, limiting its response to monitoring developments and issuing statements about “closely following” the situation.

By Tamilla Hasanova