New York: The United Arab Emirates, one of the top exporters of oil to India, announced on Tuesday that it was leaving the Organisation of Petroleum Exporting Countries, in a fallout from the Iran war, a group that has wielded power over the world price of oil.
The UAE announcement, made through the official Emirates News Agency, WAM, said that this decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile.
The UAE withdrawal, which takes effect on Friday, reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets, the WAM statement said.
WAM said that following its exit, the UAE will continue to act responsibly, bringing additional production to market gradually and in a measured manner, aligned with demand and market conditions.
It added that the UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction.
Last year, the UAE was the fourth- or fifth-largest oil supplier to India, depending on the source of the projections.
It was worth $13.5 billion in 2024, according to United Nations statistics.
The UAE is the fifth producer of petroleum products among the 12 members of the Organisation of Petroleum Exporting Countries, according to the organisation.
But globally, it ranked eighth, according to the United States Energy Information Agency.
The UAE’s withdrawal comes as it tries to diversify its economy away from oil.
WAM said that, according to the Organisation of Petroleum Exporting Countries’ Monthly Oil Market Report for April, the UAE is pushing ahead with initiatives to diversify the economy, including “Operation 300bn,” which aims to boost manufacturing, expand export markets, and attract foreign investment.
The Organisation of Petroleum Exporting Countries, founded in 1967, exerted its power in 1973 after the Israel war, choking the world supply of petroleum and sending prices soaring in a period when Arab nations dominated the petroleum market.
It sets export quotas for its members, and now the UAE will be free of the restriction as it seeks to rebuild after the Iran war, which hit its energy production infrastructure and its ability to export.
However, the Organisation of Petroleum Exporting Countries has been eclipsed by the United States, Russia, and Canada, which now hold the three top spots as exporters, after the top-ranked Saudi Arabia and above the fifth-ranked UAE, according to Investopedia.
The Organisation of Petroleum Exporting Countries’ once-unilateral ability to set prices has eroded, even though it still exerts outsised influence on global oil prices through its export quotas.
(IANS)
