In Major Move, United Arab Emirates Says It Will Leave OPEC
The United Arab Emirates will leave OPEC, a cartel of oil-producing countries, next month, the government said on Tuesday.
Emirati officials have long floated the idea of leaving the cartel, complaining that its quotas unfairly restrict oil exports.
The decision to leave was taken in light of the government’s “long-term strategic and economic vision” and plans to accelerate investment in energy production, according to a statement published by the Emirates state news agency.
The statement touched upon the government’s desire to meet the demands of the energy markets during the period of geopolitical tension caused by the US-Israeli war with Iran, which caused oil and natural gas prices to rise. He also noted that the Emirati government believes that global energy demand will result in “sustainable growth” in the medium to long term.
“The UAE’s decision to exit OPEC reflects a policy-driven evolution consistent with long-term market fundamentals,” the country’s energy minister, Suhail AlMazrouei, wrote on social media. “We thank OPEC and its member countries for decades of constructive cooperation.”
“The UAE will continue to act responsibly by bringing additional production to the market in a gradual and measured manner in line with demand and market conditions,” the statement published by state media said. statements were included.
The announcement comes amid rising tensions between the Emirate and the cartel’s de facto leader, Saudi Arabia.
Ismail Naar Contributed to reports from Dubai, United Arab Emirates.
