UBS On-Air: Paul Donovan Daily Audio 'UAE cashes out of OPEC'

The UAE’s imminent departure from the OPEC oil cartel is the most significant to date. Near term, there is little impact—oil prices are primarily influenced by Iran. Longer term, it may mean more supply, although OPEC’s influence in broadly defined energy supply is likely to decline at an accelerated pace with electrification. The move may signal a more urgent need for revenue by the UAE—reflecting reconstruction, rearmament, and the loss of revenues from oil, tourism, and nomadic wealth.