The UAE's recent decision to step away from the OPEC+ alliance has sent shockwaves through global energy markets, raising concerns about the future stability of oil supply. Peter McGuire, CEO of Australia-Trading.com, emphasized the significance of this move, noting that it accounts for 12% of oil production and has caught OPEC off guard. With crude prices already sensitive to geopolitical risks, analysts predict that prices could rise significantly, potentially reaching $120 per barrel if tensions persist. McGuire highlighted the urgency of the situation, stating that the decision was made quickly, indicating a potential price increase in the near future. He expressed concerns that the UAE's exit could weaken the cohesion of OPEC+, suggesting that it raises questions about the stability of the alliance and who might follow suit. The UAE's focus on domestic priorities and income generation further complicates the situation, as the country looks to leverage its infrastructure advantages, such as using Fujairah as a trading hub. Overall, the oil market is bracing for increased volatility as it adapts to these new dynamics.