Oil prices fell sharply after reports of UAE mulling OPEC withdrawal

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Following the issue of a report by The Wall Street Journal that said the UAE is contemplating its withdrawal from the OPEC oil cartel, global oil prices have slumped at dramatic levels, with the price of May futures for Brent crude falling by 2.1% to $82.97 per barrel, and April futures for WTI falling by 2.25% to $76.4 as of 14:25 GMT. 

The report cited tensions among Gulf countries being the reason for this possible withdrawal - particularly with Saudi Arabia.

That is because the UAE has long called for an increase in the production of oil which has been constrained by its membership in the cartel, but the Saudis have declined the UAE's request. 

The report further noted that a potential withdrawal would result in major downfalls for OPEC in global oil markets. 

The claims nonetheless remain mere rumors as the article cites anonymous Emirati officials. 

A few minutes ago, Bloomberg reported that the UAE has no plans to leave OPEC, resulting in a swift price recovery. 

Rollercoaster ride in Oil… first rumors began to circulate that the UAE was considering leaving OPEC and oil prices dropped dramatically and now strong ISM services with weaker prices and rumour denial led the bounce back up…. pic.twitter.com/j5w7hzkMEw

— IOTAF (@iotafmarkets) March 3, 2023

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