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News India Live, Digital Desk: There has been an earthquake in ‘OPEC’, the most powerful organization of the global economy, whose echo is being heard all over the world. The United Arab Emirates (UAE) has decided to withdraw from this organization due to deep differences with Saudi Arabia. This big turn in oil politics has not only changed the equations of the Middle East, but an ‘angle’ of Pakistan is also coming to the fore. This tough step by UAE has created panic in the crude oil market and international diplomacy.
War of supremacy between Saudi and UAE Saudi Arabia has dominated OPEC for years, but now the UAE wants to make its own independent oil policy. The UAE believes that Saudi Arabia is setting oil production limits as per its own wish, which is affecting the UAE’s earnings. The UAE has spent billions of dollars expanding its production capacity, and now wants the freedom to sell more oil. Saudi Arabia’s stubborn attitude has pushed the UAE towards drastic steps like leaving the organization.
Pakistan’s role and UAE’s displeasure The mention of Pakistan in this whole controversy is surprising everyone. If reports are to be believed, the increasing closeness and some secret agreements between Saudi Arabia and Pakistan have made the UAE uneasy. UAE feels that Saudi Arabia is now ignoring it in regional security and economic decisions and is giving importance to countries like Pakistan. This ‘anger’ and ‘distrust’ has added fuel to the fire, putting the decades-old unity of the Gulf countries at stake.
Oil prices may increase worldwide If UAE officially exits OPEC, it will have a direct impact on petrol and diesel prices. Breakdown of unity among OPEC countries may affect the oil supply chain. The UAE is one of the world’s largest oil producers and its exit from the organization would significantly weaken OPEC’s strength. This news can also become a cause of concern for big oil importing countries like India.
Will the alliance of oil producing countries break? Political experts say that this step of UAE can start a ‘chain reaction’. If the UAE starts selling oil on its own terms, other smaller countries in the organization may also revolt. For Saudi Arabia, this is the biggest attack on its leadership. In the coming days, it will be interesting to see whether America or other western countries will intervene to resolve this dispute or whether a new era will begin in the world of oil.