Look....OPEC is and has always been a legal cartel unit. They meet and agree to sell their product (oil)....at x-price, and limits per member are set.
Presently....UAE could produce 4.85 million barrels a day.....that's their plannedd and max-limit. But by their OPEC agreement....they can only sell 3.2 million.
The 1.6 million 'extra'? It's not produced or marketed.
You can do the math....but if they went max....that's around $100-million that they miss....DAILY. Figure in the range of $30-billion (minimum) for a year.
So they finally said 'crap'....screw this OPEC limit stuff.
Largest oil producer in the world? Yeah....so they have 'status'.
My prediction? Remaining members....Algeria, Republic of the Congo (Congo), Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia and Venezuela....are going to each have a meeting and discus the same option. Probably in two weeks....at least four other members will go to max production (Venezuela will likely be one of the four).
July prices? So much production....that oil drops to around $60 a barrel.
Iran? Royally screwed, if you ask me.
And yes, this will come to a end by early 2027....with limits re-established.
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