{"id":61533,"date":"2026-05-03T10:38:28","date_gmt":"2026-05-03T14:38:28","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bessent-pressures-powell-over-fed-transition-uae-exits-oapec-amid-energy-market-shift\/61533\/"},"modified":"2026-05-03T10:38:28","modified_gmt":"2026-05-03T14:38:28","slug":"bessent-pressures-powell-over-fed-transition-uae-exits-oapec-amid-energy-market-shift","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bessent-pressures-powell-over-fed-transition-uae-exits-oapec-amid-energy-market-shift\/61533\/","title":{"rendered":"Bessent Pressures Powell Over Fed Transition; UAE Exits OAPEC Amid Energy Market Shift"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Treasury Secretary Scott Bessent<\/strong> publicly criticized <strong>Federal Reserve<\/strong> Chair <strong>Jerome Powell\u2019s<\/strong> decision to remain on the Board of Governors, calling it a violation of &quot;historic norms&quot; and &quot;conventions.&quot;<\/li>\n<li>The <strong>United Arab Emirates<\/strong> officially withdrew from the <strong>Organization of Arab Petroleum Exporting Countries (OAPEC)<\/strong> effective May 1, 2026, marking a significant shift in Middle Eastern energy policy.<\/li>\n<li><strong>U.S. energy exports<\/strong> have reached record levels, with Bessent labeling the United States the &quot;big winner&quot; in global energy markets as futures signal a potential drop in oil prices.<\/li>\n<li><strong>Petroperu<\/strong>, Peru&#39;s state-owned oil company, has appointed <strong>Edmundo Lizarzaburu<\/strong> as its new president amid ongoing restructuring efforts.<\/li>\n<li>Geopolitical tensions remain high as the <strong>Israeli Army<\/strong> reported the destruction of eight underground routes along the &quot;Yellow Line&quot; in northern <strong>Gaza<\/strong> over the past two months.<\/li>\n<\/ul>\n<h2>Fed Transition Tensions<\/h2>\n<p>U.S. Treasury Secretary <strong>Scott Bessent<\/strong> intensified his critique of <strong>Federal Reserve<\/strong> Chair <strong>Jerome Powell<\/strong>, stating that while it is Powell&#39;s choice to remain at the central bank, doing so &quot;violates norms.&quot; Bessent expressed optimism that Powell will ultimately step down in the near term, clearing the way for a &quot;Warsh-led&quot; Federal Reserve.<\/p>\n<p>The friction centers on Powell&#39;s intention to stay on the Board of Governors until an investigation into a building renovation project is completed, despite his term as Chair expiring this month. Bessent noted that <strong>Kevin Warsh<\/strong>, the nominee to succeed Powell, has already begun meetings with senators, and he remains &quot;very optimistic&quot; about the transition under Warsh&#39;s leadership.<\/p>\n<h2>U.S. Energy Dominance and Market Outlook<\/h2>\n<p>Bessent declared the U.S. the &quot;big winner&quot; in current energy markets, citing a record level of <strong>energy exports<\/strong> driven by domestic production surges. The Treasury Secretary highlighted that the futures market is currently signaling a drop in <strong>oil prices<\/strong>, which he expects to materialize more significantly once regional conflicts subside.<\/p>\n<p>Despite the ongoing blockade and tensions in the <strong>Strait of Hormuz<\/strong>, Bessent stated that the U.S. expects to see an increase in ship crossings in the near future. He further noted that <strong>Iran<\/strong> is gaining little from its current &quot;ship tolling&quot; efforts, as global markets adapt to the shift in supply routes and the U.S. reinforces its role as a primary energy provider.<\/p>\n<h2>Global Energy and Geopolitical Shifts<\/h2>\n<p>In a major move for the global oil industry, the <strong>United Arab Emirates<\/strong> has officially withdrawn from <strong>OAPEC<\/strong> as of May 1, 2026. This exit follows the country&#39;s broader strategy to seek greater flexibility in its production quotas and domestic energy investments, further distancing itself from traditional cartel constraints.<\/p>\n<p>In South America, <strong>Petroperu<\/strong> announced the appointment of <strong>Edmundo Lizarzaburu<\/strong> as its new president. Lizarzaburu, a senior executive with extensive experience in risk management and corporate governance, takes the helm of the state oil firm as it prepares for a potential new round of state financial support.<\/p>\n<p>On the geopolitical front, the <strong>Israeli Army<\/strong> confirmed it has eliminated dozens of militants and destroyed eight underground routes in northern <strong>Gaza<\/strong> over the last 60 days. Meanwhile, <strong>Kuwait<\/strong> reported successfully thwarting a maritime infiltration attempt into its territorial waters on Saturday, underscoring the persistent instability across the Persian Gulf.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Treasury Secretary Scott Bessent publicly criticized Federal Reserve Chair Jerome Powell\u2019s decision to remain on the Board of 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