CNBC Daily Open: UAE leaves OPEC adrift
Markets grapple with the UAE's shock OPEC exit, while also contending with a host of earnings reports and a Fed decision later today.
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Logo of the Organization of the Petroleum Exporting Countries (OPEC)
Andrey Rudakov | Bloomberg | Getty Images
Hello, this is Katie Foley writing to you from London.
The UAE's shock OPEC exit is rippling across markets. But there are a host of other currents at play for investors today - a slew of earnings, a raft of rate decisions and a sea change at the Fed.
What you need to know today
And finally...
UAE’s departure from the OPEC oil cartel is not without precedence. Who could be next?
The United Arab Emirates' shock decision to leave OPEC is reverberating across global energy markets, exposing fractures in the powerful oil cartel as production quotas risk prompting other members to follow suit.
"The UAE exit is another chapter in the changing membership of the group," said Andy Lipow, president of Lipow Oil Associates. "If countries that are abiding by their quota get disgusted with those that don't, we could see additional exits that could eventually make OPEC irrelevant as a cartel," he told CNBC via email.
Countries, including Qatar, Ecuador and Angola have left the group in past years, citing frustration with quotas or shifting national priorities. Angola left in 2024, while Qatar terminated its membership in 2019.
— Lee Ying Shan
