The United Arab Emirates said on Tuesday (28 April) that it has quit the Organization of the Petroleum Exporting Countries (OPEC), with the exit effective on 1 May.
UAE is a longstanding OPEC member, and has been part of the organization since 1967. The move could create disarray and weaken the group, which has historically tried to show a united front despite internal disagreements.
Tehran’s blockade of the Strait of Hormuz has severely constrained the UAE’s ability to export oil. The UAE has been struck by fellow OPEC-member Iran’s missiles and drones over the last weeks.
The UAE did not clearly state why it decided to leave OPEC now. The energy ministry said the decision was based on the UAE’s national interest following a comprehensive review of its production policy and capacity.
“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success,” the energy ministry said in a statement.
The UAE said its exit from OPEC would give it more flexibility to respond to market dynamics.
Source: commonspace.eu with Reuters and CNBC