An economist says OPEC’s oil quotas need to be reconsidered after the UAE’s withdrawal.
Economic expert Dr. Safwan Qusay stressed the importance of reconsidering the oil quotas of the OPEC oil exporting organization after the UAE withdrew from it.
Qusay told Al-Maalomah, “The process of rearranging quotas within OPEC should be discussed, as the UAE’s withdrawal from the organization means a reduction in OPEC’s share of global markets. Member states cannot be allowed to increase their quotas unless there is competition to acquire a larger market share for the organization.”
He added, “There is a need to reconsider the organization’s market share based on the size of proven reserves and population in order to prevent the withdrawal of other countries, maintain OPEC’s cohesion, and try to bring in alternative members to replace the UAE.” He explained that “large-producing countries will be harmed if the UAE increases production without a quota rearrangement within OPEC,” noting that “Iraq, the UAE, and Saudi Arabia have the capacity to increase oil production at reduced costs, so there should be a review of quotas within OPEC, while emphasizing the importance of the UAE continuing to avoid harming global energy prices.”
Almaalomah.me