The expert predicted a collapse in oil prices after the UAE's withdrawal from OPEC and OPEC+

Reports on the withdrawal of the United Arab Emirates (UAE) from OPEC and OPEC+ organizations pose risks for the collapse of the entire alliance and could bring down oil prices. Igor Yushkov, an expert at the Financial University under the Government of the Russian Federation, shared this belief with Izvestia on April 28.

"The markets will lay down tougher scenarios that the agreement will fall apart altogether. And then everyone will extract oil to the maximum, and there will be an oversupply on the world market. Yes, all this will happen after the opening of the Strait of Hormuz, but the price on the stock exchange may decrease now, because everyone will sell oil futures in advance," he explained.

The expert noted that other members of the associations may be unhappy with the need to restrain production against the background of the likelihood of an uncontrolled increase in UAE oil production — in this case, the agreements may fall apart "like a house of cards."

"I think it's not profitable for the rest of the participants to announce their withdrawal from the organization, especially for the Persian Gulf countries. It is beneficial for them to maintain a high price. The UAE, Iraq and other players export very little now," Yushkov added.

In turn, Vasily Koltashov, an economist and head of the Center for Political Economic Research, is convinced that the UAE's withdrawal from OPEC and OPEC+ will not have a significant impact on the global economy.

"Whether within OPEC or outside, they will have to survive in the reality they find themselves in. It consists in the fact that Iran has actually established "sovereignty" over the Persian Gulf. <...> The UAE's "pose" has virtually no effect on the global economy," he said.

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Earlier on April 28, Reuters reported on the UAE's withdrawal from OPEC and OPEC+ organizations. The state agency WAM clarified that the country's withdrawal from the associations is scheduled for May 1. It is noted that the decision was made after a "comprehensive review of the UAE's production policy."

After the trading data on the platform Investing.com It was shown that the price of a barrel of Brent crude oil dropped to $104 by 15:55 Moscow time amid reports of the UAE's withdrawal from OPEC and OPEC+.