The United Arab Emirates (UAE) on Tuesday announced its decision to exit the Organisation of Petroleum Exporting Countries (OPEC), effective 1 May.
The UAE is also exiting from the global oil cartel wider alliance, OPEC+
The UAE energy ministry announced this in a statement on Tuesday.
It said the decision reflects its long- term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward looking role in global energy markets.
The decision, it said further, follows a comprehensive review of its production policy and its current and future capacity.”
It is also “based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.”
This decision comes in the wake of the US-Israel war on Iran and the struggle over control of the Strait of Hormuz, which has caused a global energy shock.
The UAE in its statement said “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.
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“A stable global energy system depends on flexible, reliable, and affordable supply. The UAE has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability. This decision follows decades of constructive cooperation,” it said.
The UAE joined OPEC in 1967, and its departure will leave the oil cartel with 11 members. The UAE is also one of the largest oil producers in the group.
Following its exit, the statement said the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions.
“With a large and competitive resource base, the UAE will continue working with partners to develop resources, supporting economic growth and diversification.
“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. Rather, it enhances the UAE’s ability to respond to evolving market needs,” the statement said.
