The U.A.E. Just Quit OPEC to Pump More Oil - Here's What That Could Mean for Gas Prices

"The U.A.E. is OPEC's third-biggest oil producer after Saudi Arabia and Iraq. OPEC production quotas limited the U.A.E.'s oil output to 3.2 million barrels a day, but it has the capacity to produce closer to 5 million barrels a day."

"The national average U.S. gas price is around $4.23, and Brent crude is trading at around $117 a barrel. The Strait of Hormuz remains largely shut due to the Iran conflict, choking off 10-12 million barrels of crude a day from global markets."

"Once the Strait reopens, higher U.A.E. supply should push prices down. OPEC's influence has been waning for years. The cartel peaked at 16 members but is now down to 12 after Ecuador, Indonesia, Qatar and Angola exited in recent years."

The United Arab Emirates has exited OPEC, significantly impacting the oil cartel as it is the third-largest producer. OPEC's production limits restricted the U.A.E. to 3.2 million barrels daily, despite its capacity of 5 million. This additional supply could address 1-2% of global oil demand. Current U.S. gas prices average $4.23, with Brent crude at $117 per barrel. The Strait of Hormuz is largely closed due to conflict, affecting global supply. Once reopened, increased U.A.E. production may lower prices. OPEC's membership has decreased from 16 to 12 in recent years.

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