oil production
The United Arab Emirates (UAE) has taken a big decision amid tension with Iran. UAE has decided to withdraw from the petroleum country groups OPEC and OPEC+. This decision has been taken at a time when there is tension with the Gulf Council (GCC). This step of UAE may cause a big blow to the real leader of the groups, Saudi Arabia. The departure of OPEC’s longtime member UAE could create chaos and weaken the group, which has generally tried to show unity despite internal differences on many issues from geopolitics to production quotas.
OPEC countries are already finding it difficult to send exports through the Strait of Hormuz due to Iran’s threats and attacks on ships. Hormuz is a narrow passage between Iran and Oman, through which a fifth of the world’s crude oil and liquefied natural gas is traded. OPEC, which is already facing the Hormuz blockade, is expected to get a big blow from this move of UAE.
What did the UAE government say?
On the decision to withdraw from OPEC and OPEC+ Plus, the UAE Energy Minister said, this decision was taken independently and no direct consultation has been done with any other country including Saudi Arabia. We are capable of taking our own decisions.
The UAE Government says that this decision has been taken after 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 effectively contribute to meeting the immediate needs of the market.
Is this good news for Trump?
UAE’s exit from OPEC is a major victory for US President Donald Trump, who has accused the organization of ‘robbing the rest of the world’ by raising oil prices. Trump already wants to weaken this group, let us tell you that this group is dominated by Russia and Saudi Arabia.
What is OPEC and OPEC Plus?
It was established in the year 1960 to prepare policy regarding oil production and sale. Initially this organization included Iraq, Iran, Kuwait, Saudi Arabia and Venezuela. Later its number was increased. Currently this organization includes Saudi Arabia, Iraq, Iran, United Arab Emirates (UAE), Libya, Indonesia, Kuwait, Nigeria, Venezuela.
Apart from these 12 members, there are 10 more countries in OPEC Plus countries, which include Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman and South Sudan.
Also read- Good news amid Hormuz crisis! Oil reserves found in Afghanistan, process of extraction started
