Mike Adams details how the UAE's exit from OPEC, driven by war losses and a desire to maximize its three-to-five million barrel capacity, fractures the cartel's 64-year price-fixing structure. He predicts that once the Strait of Hormuz reopens, a global oil glut will crash prices below $50, causing U.S. exporter bankruptcies within two years. Ultimately, this shift signals the end of oil dominance, paving the way for an era where solar and fusion power replace fossil fuels as energy costs plummet despite 2027 food crises. [Automatically generated summary]
Transcriber: CohereLabs/cohere-transcribe-03-2026, WAV2VEC2_ASR_BASE_960H, sat-12l-sm, script v26.04.01, and large-v3-turbo
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UAE Exits OPEC Cartel00:08:09
So, the United Arab Emirates has just left OPEC, or they've announced they're going to leave OPEC.
Of course, OPEC is the cartel, the price setting cartel among the oil producing nations of mostly the Persian Gulf, but also outside of that with the OPEC plus 10 arrangement.
Basically, OPEC is a consensus for a price control cartel where each country.
Participant in OPEC agrees to set a limit on how much oil it will produce in order to maintain sufficient scarcity and price levels for oil all around the world.
And since Saudi Arabia is probably the largest producer there, and the Saudis want to maximize their revenues over time, this makes good economic sense for those countries.
It's in their self interest to have some level of price controls, although it's not in the interests of the rest of the world.
And You know, because prices are kept artificially high by artificial oil scarcity.
Okay.
So that's what OPEC actually achieves is artificial scarcity.
There's, they have the ability to ship more oil.
I mean, other than right now during the war, but normally they have the ability to ship more oil.
They just choose not to because they want to keep the prices high.
So the UAE, which currently I think it's set at about three million barrels per day is its limit.
It has the infrastructure to ship four or five million.
Barrels of oil per day.
And it wants to do that, especially since it's lost a lot of money during this war because of the inability to ship oil.
So the UAE has decided to leave OPEC.
And OPEC has existed since, I think, 1960.
It's been around a while.
This is a major deal.
This is a major blow to the structure of OPEC and it will lead to oil price instability.
Now, UAE, It will decide it's going to ship more oil to make more money and it may encourage other countries to say, well, why should we stick to our limits if the UAE is not sticking to their limits?
You see, that's where this is going to start kicking off.
What if Kuwait says, well, we want to ship more oil or, you know, whoever or, or the Saudis for that matter, or Iraq, you know, over time, lots of different countries could say, well, we want to ship more oil too.
And it's in the self interest of each of those countries to ship the maximum amount Of oil that they can produce, even though that hurts the other members of the region by making their oil less valuable, right?
So it's a very interesting conundrum market dynamics, supply and demand, global pricing, et cetera.
But you know who else is going to be hurt by this decision?
It's going to be the US oil companies.
See, here's what's going to happen once the Strait of Hormuz reopens, which I assume will happen eventually.
Although it could be many months away, and there's going to be a lot of economic damage inflicted upon the world because of this current problem.
But once it reopens, there's going to be a glut of oil supply that those countries are trying to get rid of.
Right now, they're actually flaming off some of the excess oil in Iran because they just can't ship it and they don't want to close down the flow of oil in the wells because that causes long term degradation of oil production, like permanent damage.
To those oil wells.
So they keep it flowing and they're just, well, flaring off, I guess is the right term.
Not flaming off.
That's more like a gay pride parade type of thing.
See the flamer over there?
It's flaming off.
No, this is flaring off.
Anyway, the oil producers in America are going to be hurt by lower prices.
Because, again, once the strait opens up, there's going to be a glut of oil supply that is available at a very low price as these countries are trying to just get rid of the oil they have sitting around.
So much oil, they're overflowing with oil.
But now that lower price won't last very long, it may only last a few weeks.
But you're going to be shocked at how low oil goes.
Like oil will absolutely go under $50 a barrel spot price during that time period.
And that's going to hurt U.S. oil exporters who are making huge money right now on the exports because of the scarcity.
But, you know, it's wartime scarcity.
But the after effect of that is that U.S. oil producers are going to face mass bankruptcy one or two years away because the global oil prices will be suppressed.
Because of UAE leaving OPEC and probably other members also deciding to leave OPEC as well.
So, probably during this war, we could see oil hit $200 a barrel or even higher, depending on how long it lasts and how much infrastructure gets destroyed.
I mean, it's not unreasonable to see oil at $300 a barrel, depending on the level of destruction that happens.
That might be the last time we ever see oil at $300 a barrel or whatever it hits, $150, $200, because after this war, oil is going to get cheaper.
It's going to get a lot cheaper.
And that actually means that there's going to be downward pressure on food prices eventually, right?
There's also the fact that probably millions of people will starve and die in 2027 because of the current situation.
So there will be fewer people, that is, lower demand.
For food, even though there will be much higher supply eventually, because energy will be cheaper, farming will be less expensive to carry out, and we will have abundant food crops once the fertilizer gets back into production.
So, you see, talk about whiplash here.
Times are going to be very difficult for the next year or couple of years.
And yeah, millions of people are going to die, and economies are going to get wrecked, and farmers are going to go out of business.
And that's already happening, mass bankruptcies, et cetera.
But all of that is going to get reversed when the Strait of Hormuz opens up again, when the oil starts to flow in record volumes, when the fertilizer starts to flow, and oil is going to get cheaper.
As that takes place, man, it's going to be a time of cheaper food, cheaper oil, cheaper transportation, etc.
Nevertheless, in the long run, transportation is moving over to electric vehicles anyway, and the power grid is going to be providing the primary power for those vehicles, whether it's from solar or coal or natural gas or One day, fusion.
So the era of oil is slowly coming to an end.
Not in the next decade, don't get me wrong, but eventually, slowly coming to an end.
It's declining, let's say, and it's being made more obsolete by electric vehicles.
Even Tesla has the electric semis that can cruise down the highway with substantial range on nothing but batteries.
So these are game changers.
Now, anyway, bottom line, don't take any of this as investment advice.
I'm not an investment advisor.
These are just my observations and conclusions.
And I don't bet on oil markets because I'm too busy building platforms and things.
Who's got time to wreck your sleep trying to monitor oil prices?
Come on.
I don't do that.
Vital Guard Essential Oil Blend00:04:12
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