Trump said fuel prices could drop following the UAE's withdrawal from OPEC
U.S. President Donald Trump stated that gasoline prices could fall as a result of the United Arab Emirates’ decision to leave OPEC. According to him, such a move could influence the situation in the energy market and ease the pressure of high prices.
Bloomberg reports this.
The UAE’s official withdrawal from the organization is expected as early as next month. Washington views this move positively, considering it an important signal for the global oil market.
It is noted that energy prices have risen sharply amid the full-scale war in Iran, and potential changes in the policies of exporting countries could affect future price dynamics.
"I think it's great," Trump said Wednesday at the White House when asked about this move. "It's good for lowering the price of gasoline, oil, and everything else."
The UAE’s official withdrawal from the organization is scheduled for next month. The group’s influence on the markets is now under threat.
However, the market is reacting differently so far—prices continue to rise. The publication’s analysts see no evidence to support the U.S. president’s claims. The price of Brent crude jumped to a record high on Wednesday.
The main reason for the price increase is logistics, which is tied to geopolitics. Currently, official sources are reporting a complex situation.
Here are a few key factors currently shaping the market:
- The oil market is entirely dependent on the closure of the Strait of Hormuz.
- OPEC’s actions will remain secondary to prices as long as this waterway remains blocked.
- Only after it reopens will oil flows return to normal.
The rift between the UAE and Saudi Arabia
The Emirates’ move did not come as a surprise, as the conflict had been brewing for a long time. It is the result of years of tension between the UAE and OPEC leader Saudi Arabia.
The countries have been at odds over several key issues:
- Oil production levels and strict quotas.
- The UAE’s desire to play its own economic game.
- Competition for influence in the region.
The White House chief commented separately on the motives of the Emirati leader. “He probably wants to go his own way,” Trump added, referring to UAE President Sheikh Mohammed bin Zayed Al Nahyan.
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