

Image: iStock/William_Potter
The Gulf nation, the United Arab Emirates has quit the Opec (Organization of the Petroleum Exporting Countries) oil cartel in a move that could create disarray and weaken the group, reports the Guardian.
The group, headed by its biggest oil producer, Saudi Arabia, has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
Theoretically, the departure of the UAE — the fourth largest producer of crude oil in the region — from the cartel means it could produce as much oil as it wants, potentially lowering the price. But all Opec Gulf producers have been struggling to ship exports out at all, while the strait of Hormuz is effectively closed because of safety threats created by the war between the U.S. and Iran.
The Guardian says that the UAE’s exit from Opec, and its sister group Opec+, announced April 28, represents a big win for Donald Trump, who has accused the organization of “ripping off the rest of the world” by inflating oil prices.
The UAE, a regional business hub and one of Washington’s most important allies, has criticized fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the Middle East conflict.
The UAE’s energy ministry said that leaving Opec will give it greater “flexibility,” and was in line with its “long-term strategic and economic vision.” He added that the constraints on the strait meant the decision to leave would not have a huge effect on the market.
The UAE joined Opec in 1967 through the Emirate of Abu Dhabi and remained in the organization when the UAE was formed in 1971. Its departure will come into effect on May 1.
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