US President Donald Trump on Wednesday indicated that he approved of the decision by the United Arab Emirates to leave the Organization of Petroleum Exporting Countries (Opec) amid the fallout from the US-Israeli war on Iran.
“I think it’s great. I know him very well. Mohamed. Very smart, and he probably maybe wants to go his own way,” Trump said of UAE ruler Mohamed bin Zayed, often referred to by the acronym MBZ.
“That’s a good thing. I think ultimately it’s a good thing for getting the price of gas down, getting oil down, getting everything down. They have it all. He’s a great leader, actually. So no, I’m okay. They’re having some problems in Opec,” he told reporters at the White House.
Outside of Opec, the UAE will be free to raise production, potentially leading to lower energy prices, which the Trump administration would welcome amid the war on Iran.
There are signs that the UAE is hedging against a long spell of volatility amid the conflict and doubling down on its partnership with the US.
New MEE newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis on
Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters
MEE previously reported that UAE Foreign Minister Sheikh Abdullah bin Zayed told US Secretary of State Marco Rubio that Abu Dhabi is prepared for the war to last up to nine months.
Earlier this month, the UAE approached the Trump administration for a currency swap line, which would ensure the Emirates’ access to US dollars if its reserves run dry.
‘Saudi Arabia can’t control them’
On Thursday, Fox News expressed its own support for the UAE’s decision to exit the oil cartel, citing the country’s investment in its energy infrastructure. Trump often uses Fox as a barometer for his support and policies.
“They have the ability to produce. Right now, there’s about 3.6 million barrels a day. They can do anywhere up to one and a half million more, but they’re locked in because of Opec pricing,” Fox Business presenter Charles Payne said.
“In the meantime, these other Opec nations, they haven’t invested anything,” he added.
‘Empowered’: UAE’s exit from Opec appeases Trump, delivers blow to Saudi Arabia
Read More »
“UAE has been brilliant. Everyone knows Dubai [and] what they’ve done economically. And so Saudi Arabia can’t control them anymore.”
The UAE officially exits Opec on Friday.
In a statement earlier this week, the UAE energy ministry said the move followed a “comprehensive review” of its production policy.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the statement read.
“This decision follows decades of constructive cooperation. The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations.”
Since late February, the US-Israeli war on Iran has had a devastating effect on a number of Gulf states, including the UAE.
The UAE, which is the Gulf state with the closest relationship to Israel, was targeted with thousands of Iranian ballistic missiles and drones, denting the appeal of Dubai, a luxury tourism hotspot, and slowing oil exports to a trickle.
Whereas some Gulf states have urged there be dialogue with Iran, the UAE has staked out a hawkish position, calling for the US to continue the war.