US President Donald Trump is likely to reject Iran’s new Peace proposal, which offers three key points, including removing blockade of Strait of Hormuz while postponing discussions on Tehran’s nuclear programme for the later stage. US President Donald Trump has indicated that he is likely to
Being regularly active can improve your mental well-being, reduce your chances of disease and increase your lifespan. The World Health Organization recommends that adults get at least 150 minutes of moderate activity (brisk walking, easy cycling) or at least 75 minutes of vigorous activity (running
For many chess champions, a sister made the opening moveIn 2024, Vaishali and Praggnanandhaa became the first brother-sister duo to play in the Candidates Tournament. Published on: Apr 29, 2026 7:49 AM IST By Susan NInan, Bengaluru Share via Copy link Vaishali Rameshbabu’s love for watching
President Trump has nominated G. Hunter McMaster II as Assistant Treasury Secretary for Financial Markets, a role he has been performing since July. McMaster, formerly trading chief at Key Square Group, previously served as Director of Policy and Planning and counselor to the Treasury Secretary
Bengaluru buyer eyes 33-year-old Old Madras Road flat for ₹1.4 crore: ‘Is it a good investment?’A potential homebuyer shared a list of questions about a 33-year-old property priced at ₹1.4 crore. It is located on Bengaluru’s Old Madras Road. Published on: Apr 29
Why the UAE's exit from Opec is a big deal
It is a very big deal that the United Arab Emirates (UAE) has announced its abrupt exit from Opec, the Organisation of Petroleum Exporting Countries. The Emiratis were members even before they became a nation state in 1971.
Opec is the organisation of mainly Gulf oil exporters, which for many decades controlled the price of crude oil by decreasing or increasing production and allocating quotas across its membership. It had a vital role in 1970s oil crises, which in turn transformed global energy policy.
While Opec production is dominated by Saudi Arabia, the UAE had the second highest spare production capacity. In other words, it was the second most important swing producer, capable of increasing production to help ease prices.
Indeed it is precisely this that led to long-term reconsiderations of the UAE's position. Put simply, the UAE wanted to use the considerable capacity it has invested in.
Opec quotas limited its production to 3-3.5 million barrels per day. Opec membership sacrifices, in terms of lost revenues, were being made disproportionately by the UAE.
However, the timing of this move hints at consequences from the Iran war. The pressure cooker in the Gulf has impacted the UAE's relationship with Iran and may affect its already strained relationship with Saudi Arabia.
As for Opec, this is a big blow at a time when significant questions are being asked about its long-term coherence.
It's not just that the UAE, when it can get its oil fully back on the market by sea or pipeline, is likely to target 5 million barrels per day production. Saudi Arabia might respond with an oil price war that the UAE's more diversified economy could withstand, but other poorer Opec members might not.
Much depends on the Saudi response.
Leading Emirati officials talk of new pipelines from the UAE's oil fields in Abu Dhabi, bypassing the Strait of Hormuz, and heading to the underused port of Fujairah.
There is already one pipeline in heavy use today, but more capacity will be needed to cope with increased production and a permanent change to the fluidity and cost of tanker traffic in the Gulf.
For now, of course, during a double blockade of sea traffic in the Strait of Hormuz, this is not the main event in oil markets, affecting the prices of oil, gas, petrol, plastics and food.
While the world understandably focuses on oil at $110 per barrel, this is, however, a reason not to discount the chance that it could be closer to $50 sometime next year - if the mess in the Strait is sorted, for example, in time for the US midterm elections later this year.
Opec is less important to world oil markets than it was in the 1970s, with the 85% share of internationally traded oil it had then more like 50% today. Oil is also less critical to the world economy than it was in the 1970s. Opec has leverage now, but not a monopoly. It can't hold the world to ransom, as it were.
I recall being told by the Opec figurehead, former Saudi Oil Minister Sheikh Yamani: "The Stone Age did not end because the world ran out of stones. The Oil Age will not end because the world runs out of oil." This foretells of a world where hydrocarbons are substituted by other energy sources.
One way to read the UAE's action is as a sign of this world of reduced oil reliance, and there have been some other clues in the current maelstrom: China's investments in electrification have helped cushion the economic blow from rising oil and gas prices.
By some calculations, the electrification of China's cars, lorries, and trains has reduced oil demand in the world's second biggest economy by 1 million barrels a day. Global oil demand could plateau as this trend accelerates around the world.
In this view, it makes sense to raise as much money from oil reserves as quickly as possible before demand craters. The UAE has financial firepower and a partly diversified economy, through financial services and tourism.
Much will depend on what the new normal becomes if and when hostilities in the Gulf cease.
The UAE's Opec exit could spark further dominoes falling here, and there will be considerable pressure now on Saudi Arabia.
When the tankers flow through the Strait again, or if the UAE redoubles its attempts to build new pipelines, Emirati oil will flow like never before, unconstrained by Opec commitments.
It will have little effect on the current blockades. It could change everything afterwards.
Source: BBC
Related Posts: OPEC+ to raise oil output slightly even as U OPEC+ may consider larger oil output boost OPEC+ Raises Oil Production Limits OPEC to raise output as Iran war threatens to bolster rally in crude oil prices OPEC+ debates oil output boost as US war on Iran disrupts shipments Oil falls as OPEC output hike adds to oversupply concerns Setback for Pak as UAE exits airport deal after Mohammed bin’s India visit Record-breaking Suryavanshi powers India to big 234-run win over UAE in U19 Asia Cup opener UAE President Sheikh Mohamed bin Zayed to visit India on 19 Jan Microsoft to invest over $15 billion in UAE
May 2026 Horoscope: How the 2 Full Moons this month may impact each zodiac signAccording to an astrologer, when a month holds two full moons, the effect is not just doubled, it is layered. Read on to know their astrological significance. Published on: Apr 28
Just now
Kim Jong Un has praised North Korean soldiers who killed themselves by detonating their grenades while fighting for Russia against Ukraine, confirming a long-suspected battlefield policy. In a speech this week, the North Korean leader said those who "unhesitatingly opted for self-blasting
Just now
Do bhai, dono tabahi…Fitzpatricks give a literal meaning to the trending taglineMatt and Alex Fitzpatrick lit up the golf scene last week, picking up a fourth title for the family in a seven-week stretch Published on: Apr 29, 2026 8:00 AM IST By Joy Chakravarty Share via Copy link It’s probably
Just now
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.Thinking of going big with your next TV? These 10 75 inch smart TVs bring the theatre homeA 75 inch smart TV offer an immersive viewing experience with large screens
Just now
Reliance Jio has introduced a new prepaid plan of Rs 459. This plan gives the user several advantages other than data and calls. This plan provides 2 GB per day for 28 days, including an additional 5 GB of bonus. This plan will be suitable for users who enjoy watching movies or playing games on
Just now
The Chhattisgarh Board of Secondary Education (CGBSE) is set to announce the Class 10 and Class 12 results tomorrow, April 29 at 2:30pm on the official websites — cgbse.nic.in and results.cg.nic.in. The results will also be available on LiveMint as well
Just now
Sugar-free products with sugar. ‘Real’ juices with artificial ingredients. Misleading food ads are fuelling a public health crisis in India. Help Scroll expose the systemic failure. Support our investigation.Sugar-free products with sugar. ‘Real’ juices with artificial ingredients
Just now
Rs 3034 crore assets of Anil Ambani-led Reliance Group of Companies attached by ED in a fresh order. ED attached the RCOM and RInfra assets, including a flat in Mumbai, a farmhouse in Khandala and Rs 7.71 crore shares of R-Infra. According to the officials
Just now
One of these films is a comedy which will go on floors in January 2027. Good news for fans of Akshay Kumar and Priyadarshan’s collaborations! The actor and the director are all set to make two more films after Bhooth Bangla and Haiwaan. Their previous collaborations include Hera Pheri
Just now
Manchester City faces a demanding schedule. Three games in seven days will decide their domestic treble hopes. They play Crystal Palace, then Chelsea in the FA Cup final. Finally, they visit Bournemouth. This run is vital for their title race with Arsenal
Just now
New Delhi: Delhi to witness five dry days between May and September this year. The government directed that the sale of liquor will remain prohibited across the capital during this period, in accordance with the Delhi Excise Rules, 2010.New Delhi: Delhi to witness five dry days between May and
Just now
The draft electric vehicle policy issued by the Delhi government on April 11 aims to promote electrification for vehicles through a mix of incentives, road-tax waivers and restrictions on new registrations of vehicles that use petrol and diesel. However
Just now
Every once in a while a match comes along that reminds us all why football is referred to as the beautiful game. Paris St-Germain's record-breaking 5-4 Champions League semi-final first-leg victory over Bayern Munich was one such occasion. It was the highest scoring semi-final since Eintracht
Just now
Jio Recharge Plans: If you are someone who uses a Jio SIM card, then there is some important information for you. Recent reports suggest that the telecom giant might be quietly cutting off connections of SIM cards that are solely used for the purpose of incoming calls; many users have already
Just now
2026 Honda City Facelift Details: The Honda City was introduced in India in 1998, and it has remained a popular sedan in the country ever since. The 5th generation of the popular sedan was launched in the country in 2020, and the brand is all set to launch the 2026 Honda City Facelift on May 22
Just now
No laxity in complaint handling, MCG chief tells officialsAt a review meet, officials were told to avoid superficial closure of complaints, submit timely reports, and monitor pending cases; AI-based Road Athena cited as a best practice. Published on: Apr 29
Just now
5 things to keep in mind when choosing a career path after Class 10Staying open-minded, patient, and curious will help you make better decisions over time. Simple things to keep in mind while making this important decision. Updated on: Apr 28
Just now
Reliance Industries is reportedly set to invest ₹1.6 lakh crore, or more than $17 billion, to build a 1.5-gigawatt data centre cluster and a captive solar battery storage system in Visakhapatnam, Andhra Pradesh. The project is expected to become India’s largest data centre cluster
Just now
India’s microfinance sector expanded steadily in the March quarter even as lenders tightened credit filters, with asset quality improving to record levels, according to a report by Equifax. The sector’s total portfolio outstanding rose 5% quarter-on-quarter to ₹3
Just now
Air India, IndiGo and SpiceJet have told the Union government that the country’s aviation sector is on the verge of “stopping operations”, and have sought a revision in aviation turbine fuel prices amid the conflict in West Asia, PTI reported on Tuesday.Air India
Just now
With the cinematic debut of the Mandalorian and his sidekick Grogu and the return of the iconic Miranda Priestly, these are the films to watch at the cinema and stream at home this month. In George Orwell's novella, a farm is taken over by its four-legged inhabitants
Just now
The Trump administration is scrambling to implement new, more durable tariffs after the Supreme Court struck down previous ones. Hearings are underway to investigate forced labor and overproduction by trading partners, with potential for new import taxes to replace expiring temporary levies and
Just now
Mumbai: The Reserve Bank of India (RBI) on Monday released its final guidelines on asset classification and provisioning for lenders, marking a significant shift toward a more forward-looking risk assessment framework. The rules, which were first proposed in draft form in October last year
Just now
Buddha Purnima 2026: Buddha Jayanti or Buddha Purnima is a highly sacred festival in Buddhism, celebrated to commemorate the birth, enlightenment, and Mahaparinirvana of Lord Buddha. This day holds profound spiritual significance for millions of Buddhist followers across the globe
Just now
Lenovo has finally launchee the new Idea Tab Pro Gen 2 in India with a 13-inch 3.5K display, latest Qualcomm processor and some new AI features. The new tablet is designed for creators and professionals and will take on the likes of recently launched Xiaomi Pad 8 and the upcoming OnePlus Pad 4
Just now
Karisma Kapoor requests paparazzi ‘zyada zoom mat karna’ during India’s Best Dancer shoot; internet reactsKarisma Kapoor grabbed attention after a video from India’s Best Dancer Season 5 sets showed her politely asking paparazzi not to zoom in. Apr 29, 2026
Just now
The petitioner alleged that Sharma, often nicknamed the "Singham of UP" for his record as an encounter specialist, has abandoned the neutrality required of an Election Commission (ECI) observer. New Delhi: In a dramatic escalation of the electoral battle for West Bengal
Just now
