Tidbits, United Arab Emirates & OPEC, Gas & Biofuel, SA Crops, Spring Sowing 4/291/26
- Wright team
- Apr 29
- 4 min read
Tidbits
If you have any May positions, your cash grain and futures brokers want you to liquidate or roll all May positions before the close today.
The Federal Reserve and the Bank of Canada will announce this afternoon their decision on interest rates. The market expects no changes by either central bank.
Crude oil: After nearly 60 years of membership, the United Arab Emirates (UAE) announced yesterday it is leaving OPEC. Angola left OPEC in 2024, Ecuador left in 2020, and Qatar left in 2019.
The UAE has spare capacity of around 5 million barrels per day. Its production has been constrained by OPEC+ quotas, often producing closer to 3–3.5 million bpd. However, the closure of the Strait of Hormuz greatly limits their export potential.
The country had longstanding differences with Saudi Arabia (OPEC's de facto leader) over quotas, baselines, and Yemen’s role in the Middle East power structure. The ongoing Iran war and disruptions in the Strait of Hormuz have added urgency to UAE’s desire for autonomy to ramp up output amid supply shocks and high prices.
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