The United Arab Emirates has decided to leave the Opec group of oil producers after six decades of membership amid an energy supply shock in the Middle East spurred by the US-Israeli war with Iran.
The UAE announced the decision, through the state-run WAM news agency, which will be effective from May 1.
Opec (Organisation of Petroleum Exporting Countries) was founded in Iran in 1960 and aims to co-ordinate production among member countries, stabilise oil markets and keep supply and income steady.
The UAE joined Opec in 1967, and its departure will leave the oil cartel with 11 member countries including Saudi Arabia, Iran and Iraq.
A statement on the WAM news agency read: “This decision follows 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 contributing effectively to meeting the market’s pressing needs.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long-term.”
The statement went on to say that following its exit, the UAE would “continue to act responsibly, bringing additional production to market in a gradual and measured manner”.
It has been reported that the UAE has expressed frustrations with production quotas agreed by Opec members in a bid to control oil prices, with the decision also referring to a desire for greater flexibility.
But the announcement comes at a fraught time in the Middle East with the closure of the Strait of Hormuz disrupting oil and gas supplies around the world and sending prices soaring.
