Oil-Producing Nations to Navigate Tectonic Market Shift -- Market Talk

Dow Jones16:33

0833 GMT - The challenge facing petroleum-producing nations isn't the United Arab Emirates' exit from OPEC but the broader tectonic shifts in the oil market, says Julius Baer's Norbert Rücker. U.S. shale oil, South American deepwater oil, and Chinese plug-in hybrid cars all illustrate the new setting for oil markets, one characterized by stagnation and greater competition, he adds. The U.A.E.'s OPEC exit aligns with the analyst's longer-term view of the oil market, in which ample supply and increased competition will anchor prices in the high $60s a barrel. The geopolitical consequences of the exit aren't yet clear. But it comes at a time of greater realignment of relationships in the region and "could advance solution-finding within the continuing conflict," he says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

April 29, 2026 04:33 ET (08:33 GMT)

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