Analyst: The UAE's withdrawal may be a protest against the war, with limited impact on oil prices at present

Affected by the news, oil prices dropped sharply under the influence of algorithmic trading but quickly rebounded afterwards. The UAE Energy Minister stated that this decision was made after a careful review of the country’s strategy in the energy sector, oil sector, and other areas. They also mentioned that this decision had been brewing for some time, and considering the current state of the global oil market, now is the right time to make it. Investinglive analyst Adam Button noted that, given the market is expected to be in a supply deficit for some time, this makes sense. Some even suspect whether OPEC may collapse completely as a result. Although this has long been the wish of the United States, caution is needed: oil prices could become more volatile—with higher highs and higher lows. For now, the impact on oil prices is limited, as OPEC, after the war, will be producing at full capacity for a long time to replenish inventories. The UAE is currently producing 3.8 million barrels per day, with plans to increase to 4.1 million barrels per day, and there are even discussions of reaching 5 million barrels per day.