HONG KONG, April 29. /TASS/. The decision of the UAE to withdraw from OPEC and OPEC+ will lead to global oil market restructuring, Hung Wing Lok, the Lecturer at the School of Governance and Policy Science of the Chinese University of Hong Kong, told TASS

"The global oil market supply will be reshaped and the UAE is expected to increase its oil supply to the world. The influx of UAE crude is anticipated to drive the oil price down and challenge Saudi Arabia’s dominance in the global oil market," he said.

Several factors prompted the UAE to withdraw from OPEC and OPEC+, the expert noted. "The country would like to seek greater strategic autonomy for its oil strategy and can increase its oil supply when the Strait of Hormuz is reopened. There have been reports of discussions regarding a potential currency swap between the UAE and the US. Should the deal proceed it would enhance the UAE’s monetary base. It is likely that the oil price will not increase sharply and will benefit the US economy as well," Hung noted.

"In the short term the UAE’s decision will ensure the oil price and supply to Asia including Hong Kong and China," the expert said. No significant impact will be at the same time as Hong Kong and China are rapidly transforming to new energy and alternative sources," he added.