Abu Dhabi: In a significant development, the United Arab Emirates (UAE) on Tuesday announced its decision to exit from OPEC and OPEC+. The decision is being considered as a major shift in global energy politics at a time when the Middle East is witnessing tensions in the region.
The decision delivered a major blow to the oil-producing alliance, including Saudi Arabia. The country was seen as a reliable member of OPEC. Its decision to exit has led to the risk of weakening of coordination within the bloc, at a time when markets remained volatile, and supply routes are affected, more so due to tensions between Iran and the US over the Strait of Hormuz.
“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,” wrote UAE Minister Of Energy & Infrastructure, Suhail Mohamed AlMazrouei.