United Arab Emirates leaving OPEC, effective May 1

The United Arab Emirates announced Tuesday that it will exit OPEC on May 1, dealing a major blow to the cartel that coordinates production for many of the world’s largest oil producers.

The UAE’s shock announcement comes after the Gulf state was the target of Iranian missile and drone attacks for weeks. Tehran’s blockade of the Strait of Hormuz has also severely restricted the UAE’s ability to export oil, threatening the foundation of its economy.

The UAE became OPEC’s third largest oil producer in February, after Saudi Arabia and Iraq. It joined OPEC in 1967, seven years after its founding.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity, and is based on our national interests and our commitment to effectively contribute to meeting the urgent needs of the market,” the UAE energy ministry said in a statement. he said.

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