UAE Quits OPEC And OPEC+ In Major Blow To Global Oil Producers
Abu Dhabi, UAE: The United Arab Emirates (UAE) on Tuesday, April 28, left the Organization of the Petroleum Exporting Countries (OPEC) and Organization of the Petroleum Exporting Countries Plus (OPEC+).
The emirate announced the historic energy shock to the global oil-exporting groups after the US-Israel war on Iran. The moves comes at a time when the Iran war has caused a historic energy shock and unsettled the global economy. The decision will be effective May 1, as per the report.
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OPEC Gulf producers have been struggling to ship exports through the Strait of Hormuz, where a fifth of the world’s crude oil and liquefied natural gas normally passes, due to Iranian threats and attacks on vessels.
The UAE’s exit from the OPEC is believed to be ramping up independent oil output amid the energy crisis. The decision was taken after a careful look at the regional power’s energy strategies, UAE Energy Minister Suhail Mohamed al-Mazrouei, Reuters quoted.
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UAE’s move came after the emirate criticised fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war.
Notably, the UAE’s decision appears to be in line with US president Donald Trump who had in a 2018 address in the UN General Assembly accused the organisation of “ripping off the rest of the world” by inflating oil prices. UAE as one of the regional business and financial hubs is one of Washington’s most important allies in the region.
