New Delhi: The United Arab Emirates announced on Tuesday that it was leaving the OPEC and OPEC+ cartels in what is seen as a major setback to the group of oil-exporting countries led by Saudi Arabia.
The UAE said the decision reflected its “long-term strategic and economic vision and evolving energy profile”.
The Gulf state’s Energy Minister Suhail Al Mazrouei said that being a country with no obligation under the groups would provide more flexibility.
In a public statement shared on X, Mazrouei said: “The UAE’s decision to exit OPEC aligns with sector policy-driven developments and is consistent with long-term market fundamentals.”
“We express our appreciation to OPEC and member states for decades of constructive cooperation. We reaffirm our commitment to energy security by providing reliable, responsible, and low-emission supplies, supporting global market stability,” he added.
The exit of the UAE is expected to weaken the oil cartel at a time when the Persian Gulf countries have taken a huge hit to their exports due to the closure of the Strait of Hormuz by an embattled Iran. The UAE accounts for around 15 per cent of the OPEC oil exports.
Analysts see the exit of the UAE from the OPEC cartel as a huge gain for US President Donald Trump, who has been lashing out at the group for inflating oil prices at the cost of other countries. Trump has accused the group of “ripping off the rest of the world” by jacking up oil prices.
According to the latest OPEC data, the UAE produces 2.9 million barrels of oil a year. Saudi Arabia, the de facto leader of OPEC, produces nine million barrels of oil
The OPEC was formed in 1960 by five countries — Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela — with the aim of coordinating production to ensure that the prices do not fall below their desired level, leading to enhanced revenue for its members.
The number of countries in the cartel has fluctuated over the years, but in addition to the five founding members, it also includes Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, and the Republic of the Congo.
Following the UAE’s exit from the group effective May 1, OPEC will continue with 11 active members. Other members who have left in the last decade are Qatar, Angola, Ecuador, and Indonesia.
The OPEC+ includes other oil-producing nations like Azerbaijan, Bahrain, Brunei, Brazil, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
(IANS)
