In a much awaited move, UAE has quit OPEC (Oil Producing & Exporting Countries) yesterday breaking the Islamic countries alliances.
The cracks amongst the muslim dominated countries have started to be more visible now.
And the US is fully exploiting it.
First, US made them go at war with each other by making it Iran Vs Other Islamic countries.
Now because of growing differences between Saudi and UAE, the OPEC quit comes.
UAE is tilting more towards the US and moving away from the Middle East mess. (Dubai real estate market is down by 25% thanks to the Iran war, on top of that UAE is restricted to pump less oil because OPEC wants to control the production quota).
This restricts their financial freedom, exactly when people are not buying properties in Dubai.
US played a really smart strategic game and hurt Dubai (& more of Islamic countries) where it hurts more. Real estate & Oil.
This was a strategic masterstroke by US in geopolitics to secure it’s interest and break a crucial middle east diaspora. Credit where it is due.
And this changes a lot of things.
A big positive for India too.
We’ll have another reliable supplier of oil. Apart from Russia, UAE too has good relations with India.
This opens up our doors & options and reduces reliance from OPEC.
With Russia and UAE supplying as much oil as India needs, this is taken as a good news and hence markets closed in the green today despite Brent Crude at $115.
