Expert: UAE's OPEC exit has minimal short-term impact on oil prices

The UAE's exit from OPEC will have a minimal short-term impact on oil prices due to the ongoing Strait of Hormuz blockade. Expert Motohashi stated that medium-term price drops depend on Saudi Arabia's production cuts once the Strait reopens. He also noted that the UAE's pro-Israel stance exacerbates regional instability. Long-term, oil prices may fall due to reduced consumption, particularly in Asia, driven by electrification and China's progress in abandoning fossil fuels.