The move by the UAE is a significant blow to the global organization of major oil producers
© Getty Images / Buena Vista Images
The
United Arab Emirates has decided to leave the Organization of the
Petroleum Exporting Countries (OPEC), as well as OPEC+, the state
Emirates News Agency (WAM) reports.
The withdrawal, which is set
to come into force on May 1, is viewed as a serious blow to Saudi
Arabia, the informal leader of OPEC.
The news comes amid a crisis
in the Middle East triggered by the US-Israeli war against Iran, which
resulted in the suspension of crude exports from the Persian Gulf and
damage to Arab nations that host US military bases.
The statement
expressed appreciation for cooperation within the organization and with
members of OPEC+, which was formed in 2016 and includes Russia,
Kazakhstan, Oman, Mexico, and other non-OPEC countries.
The UAE
has consistently ranked behind fellow OPEC members Saudi Arabia and Iraq
in terms of production quotas. Angola, Ecuador, Indonesia, and Qatar
have withdrawn from OPEC in the past for various reasons, ranging from
an unwillingness to pay membership fees to broader political tensions
among Gulf nations in the case of Qatar’s 2019 decision to leave.
Earlier on Tuesday, Brent crude price hit $110 for the first time in three weeks, as peace talks between US and Iran stalled,
raising risks that the global supply of crude will remain throttled for
the foreseeable future. The price decreased following the UAE’s
announcement, but overall volatility persisted.