- WIADOMOŚCI
UAE leaves OPEC and OPEC+
The authorities of the United Arab Emirates have decided to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and from OPEC+, which brings together countries associated with the organization. The decision comes in response to the situation caused by the blockade of the Strait of Hormuz.
Photo. C.Stadler/Bwag / Wikimedia Commons
The announcement was made by the UAE Minister of Energy, Suhail Mohamed Al Mazrouei, in an interview with Reuters. “This is a political decision, made after a thorough analysis of current and future policies related to production levels.” The UAE will leave both organizations on May 1. The decision to withdraw was reportedly not consulted with any of the country’s regional allies.
Due to the blockade of the Strait of Hormuz, for nearly two months OPEC member states from the Persian Gulf region have faced serious difficulties in exporting crude oil. Reuters described the UAE’s withdrawal from OPEC as “a major victory for U.S. President Donald Trump,” who in the past accused member states of “cheating the rest of the world by inflating oil prices.”
The Organization of the Petroleum Exporting Countries has existed since 1960. Within the organization, member states coordinate their oil production and sales policies. Among the Gulf states, only Qatar had previously decided to leave OPEC in 2019. Following the end of its membership, the UAE will no longer be subject to production or pricing limits. The organization will be significantly weakened, and once the Strait of Hormuz is reopened, even more substantial declines in oil prices may follow.
