BREAKING: UAE Quits OPEC After 60 Years as Oil Surges Past $119 — Global Energy Markets in Turmoil
JUBA, South Sudan — In a seismic shift that sent shockwaves through global energy markets, the United Arab Emirates announced on Tuesday that it is withdrawing from the Organization of the Petroleum Exporting Countries (OPEC) after nearly 60 years of membership, dealing a historic blow to the oil cartel. The news pushed Brent crude above $119 per barrel — the highest level since 2022 — as traders scrambled to price in the fallout.
The UAE’s state news agency confirmed the departure, which takes effect this week. The Gulf nation had long chafed under OPEC’s production quotas, which limited its ability to maximize output at a time of soaring global demand and geopolitical turmoil. The move represents a major victory for U.S. President Donald Trump, who has repeatedly attacked OPEC for “ripping off the rest of the world” by inflating oil prices.
The development comes amid an intensifying Middle East crisis. The United States and Iran remain locked in escalating tensions, with Trump warning Tehran to “better get smart soon” in a social media post featuring a mocked-up image of himself holding a gun. Live updates from CNN describe the situation as Day 60 of the conflict, with no ceasefire in sight.
Implications for Africa and South Sudan
For oil-importing nations across Africa, the price surge threatens to worsen inflation, weaken currencies, and raise the cost of fuel, food, and transportation. South Sudan — which relies heavily on imported refined petroleum products — could see pump prices spike, adding strain to an already fragile economy still recovering from years of civil war.
However, the crisis could also present opportunities. South Sudanese officials have previously signaled interest in reviving oil exploration and production beyond current output levels. A sustained high-price environment may attract renewed foreign investment into Africa’s upstream oil sector.
Oil Markets in Uncharted Territory
Brent crude jumped past $119 a barrel on Wednesday ahead of the Federal Reserve’s policy decision, according to the Times of India. Analysts warn that the UAE’s exit could unravel the OPEC+ alliance — which includes Russia — potentially reshaping global energy diplomacy for years to come. The cartel had already been weakened by disagreements over quotas, and the loss of a major Gulf producer threatens its cohesion.
The United Nations Security Council is expected to hold emergency consultations on the broader Middle East situation. Meanwhile, European nations are scrambling to secure alternative energy supplies before winter.
This story is developing. Check back with JubaGlobal for updates.
