The United Arab Emirates is withdrawing from the OPEC and OPEC+ oil cartels as the Iran war drives a historic energy shock and rattles the global economy.
https://p.dw.com/p/5Cx2hThe news is a blow to the oil exporting groups and their de facto leader, Saudi ArabiaImage: Barbara Gindl/dpa/picture allianceAdvertisementThe United Arab Emirates has said it will leave OPEC and the wider OPEC+ group, dealing a major blow to the oil producer alliances during a global energy shock.
The loss of the UAE, a longstanding member, threatens to weaken unity within OPEC, which has often masked internal divisions over geopolitics and production quotas.
A statement from the UAE's Ministry of Energy and Infrastructure said the move, effective May 1, reflects the emirates' long-term strategic and economic priorities.
"This decision follows a comprehensive review of the UAE's production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market's pressing needs," the statement read.
The UAE would continue to act responsibly, it said, "bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions."
"During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all. However, the time has come to focus our efforts on what our national interest dictates."
The statement said the UAE would remain committed to global market stability.
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"The UAE withdrawal marks a significant shift for OPEC," said Jorge Leon from the energy research company Rystad. "Alongside Saudi Arabia, it [the UAE] is one of the few members with meaningful spare capacity — the mechanism through which the group exerts market influence."
The break underlines a general drift in the historically strong alliance between the UAE and Saudi Arabia, said Ajay Parmar, director of energy and refining with the market information service ICIS.
"The UAE has been in disagreement with general OPEC policy for quite some time. So it's not a surprise, but it will certainly have a significant impact in the long term."
Edited by Srinivas Mazumdaru
