Why UAE’s exit from Opec is good news for Asia’s energy security

Once free of Opec’s production caps, the world’s sixth-largest oil producer plans to flood the market with 5 million barrels a day

Global oil prices continued to surge on Wednesday, with benchmark Brent crude oil prices hitting US$111 a barrel and US West Texas Intermediate (WTI) approaching US$100 a barrel. Before the Iran war, Brent was trading around US$70 a barrel, while WTI was about US$65 per barrel.

“For Asia’s import-heavy economies like Japan, India and South Korea, that’s structurally good news on prices long-term, even if the near-term picture is painful with Asian refineries already cutting runs sharply,” Saraswat said.

Source: News - South China Morning Post