The UAE has had increasingly frosty relations with Saudi Arabia, OPEC’s largest producer, over political and economic matters in the Mideast, even after both came under attack by Iran.
The UAE has had increasingly frosty relations with Saudi Arabia, OPEC’s largest producer, over political and economic matters in the Mideast, even after both came under attack by Iran.
DUBAI, United Arab Emirates — The United Arab Emirates announced Tuesday that it will leave OPEC effective May 1, stripping the oil cartel of one of its largest producers and further weakening its leverage over global oil supplies and prices. The UAE’s decision had been rumored as a possibility for some time, as it pushed back in recent years against OPEC production quotas it felt had been too low — meaning it wasn’t able to sell as much oil to the world as it had wanted.
Regional politics are also likely at play. The UAE has had increasingly frosty relations with Saudi Arabia, OPEC’s largest producer, over political and economic matters in the Mideast, even after both came under attack by fellow OPEC member Iran during the war. The UAE had been a longtime member of OPEC, first through its emirate of Abu Dhabi in 1967 and later when the UAE became its own country in 1971.
It had been producing around 3.4 million barrels of crude a day just before the United States and Israel launched a war on Iran on Feb. 28. The UAE made the announcement via its state-run WAM news agency, saying it also would be leaving the wider OPEC+ group as well, which Russia had led in order to try to stabilize oil prices.
“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the UAE said. “Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the country added.
Saudi Arabia long has been considered a heavyweight of OPEC, an oil cartel based in Vienna that has seen some of its market power wane as the United States increased its production of crude oil in recent years.. The two countries had joined in together in a coalition to fight against Yemen’s Iran-backed Houthi rebels in 2015.
However, that coalition broke down into recriminations in late December, when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE. Saudi broadcasters long based in Dubai, the economic hub of the UAE, have pulled back to the kingdom in recent months as well as the tensions rose. 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United Arab Emirates says it will leave OPEC effective May 1The United Arab Emirates announced Tuesday that it will leave the oil cartel OPEC and its wider OPEC+ group effective May 1.
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United Arab Emirates says it will leave OPEC effective May 1The United Arab Emirates announced Tuesday that it will leave the oil cartel OPEC and its wider OPEC+ group effective May 1.
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United Arab Emirates says it will leave OPEC effective May 1The UAE had been a longtime member of OPEC.
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United Arab Emirates says it will leave OPEC effective May 1The United Arab Emirates announced Tuesday that it will leave the oil cartel OPEC and its wider OPEC+ group effective May 1.
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United Arab Emirates says it will leave OPEC effective May 1The United Arab Emirates announced Tuesday that it will leave the oil cartel OPEC and its wider OPEC+ group effective May 1.
Read more »
United Arab Emirates says it will leave oil cartel OPEC effective May 1The United Arab Emirates says that it will leave the oil cartel OPEC effective May 1. The UAE made the announcement on Tuesday via its state-run WAM news agency.
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