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UAE OPEC Exit Impact On India Oil Market: The sudden decision by the United Arab Emirates (UAE) to say goodbye to OPEC and OPEC+ has created a stir in the energy market all over the world. At a time when there is already an oil crisis due to the Iran war and the global economy is unstable, this step of the UAE is considered very important.

Since India is heavily dependent on imports for its crude oil needs, it is certain that this turmoil in the international market will have an impact on India.

Will petrol and diesel prices increase in India?

According to experts, any disruption in the supply of oil from UAE can increase the prices of crude oil in the international market, which can increase the prices of petrol and diesel in India.

However, the saving grace is that India is not dependent on just one country for oil, so there is little possibility of an immediate huge jump in prices in the domestic market. Future fuel prices will depend more on government policies, tax structures and global oil market conditions.

Why did UAE leave OPEC?

It is believed that Strait of Hormuz UAE has taken this drastic step due to the closure of oil fields and slow pace of oil supply. Let it be known that one-fifth of the world’s crude oil passes through this route, which is currently disrupted due to the Iran war.

Being a member of OPEC, UAE had many restrictions regarding production. Now by leaving this organization, UAE will be free to increase its crude oil supply.

How will India benefit?

Many experts also believe that this decision can prove beneficial for India in the long run. After exiting OPEC, UAE can offer oil at lower prices to increase its market share.

Given the strong bilateral relations between India and UAE, India can take advantage of this situation and a new avenue of cheap oil may open up for the country.

What will be the future of OPEC now?

Due to this decision of UAE, there is a possibility of weakening of OPEC and OPEC+ organizations. American President Donald Trumpwho has also previously accused OPEC of ‘looting the world’ by raising oil prices. This is like a big good news for those who have been accused. Trump has believed that Gulf countries charge high prices in exchange for security, so UAE’s exit is a sign of a major change in global oil politics.