Investor Ross Gerber, co-founder of investment firm Gerber Kawasaki, said on Tuesday that the world should move on from oil, as the UAE announced its exit from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+.
Death Blow To Oil
In a post on X, Gerber shared his thoughts, sharing that the UAE’s move to pull out of the consortium was “signaling the death blow to the manipulated oil market controlled by the Saudis” and that it was not a “good week” for Saudi Arabia’s Crown Prince Mohammed Bin Salman. “About time we get off the oil based system of the 20th century,” Gerber said.
OPEC is a group of 12 oil-producing member states aimed at unifying oil-related policies. Member states include Saudi Arabia, the Republic of the Congo, Algeria, Gabon, Iran, Iraq, Equatorial Guinea, Kuwait, Libya, Nigeria, as well as Venezuela. The group is responsible for roughly 30% of the global oil supply.
The UAE, a member of OPEC since 1967, announced its exit from the group as it prioritizes increasing oil production and exports. “U.A.E. wanted to be unconstrained by any groups,” the country’s Energy Minister Suhail Al Mazrouei shared in a New York Times interview following its exit.
Meanwhile, oil prices continue to remain volatile, with the West Texas Intermediate (WTI) crude trading for $99.05/barrel at press time and the Brent crude commanding a price of $110.8/barrel. The United States Oil Fund (NYSE:USO), an ETF that tracks the WTI crude, surged 3.62% to $139.60 at market close, but declined 0.08% to $139.49 during the after-hours trading.
Trump Unhappy With Iran Proposal
The UAE’s exit comes at a time when the tensions in the region show little sign of relenting. President Donald Trump was reportedly left unhappy with Iran’s latest proposal to reopen the Strait of Hormuz, which would require the U.S. to lift its blockade of Iranian ships passing through the region.
The U.S. has been pushing for Iran to stop its nuclear activities as part of any negotiations or proposals to lift its blockade and de-escalate the tensions in the region.
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