UAE Quits OPEC Oil Cartel
The United Arab Emirates (UAE) is quitting the Opec and Opec+ groups of major oil producing nations next month after nearly 60 years of membership.
The UAE said its decision would help it meet growing global energy demand in the long term after recent investments to boost its production capacity.
It is seen as a blow to the cartel, with one analyst describing the exit as “the beginning of the end of OPEC”.
The Gulf state’s energy minister said being a country with no obligation under the groups would give it more flexibility.
The UAE’s departure represents a win for US President Donald Trump, who has previously attacked OPEC for “ripping off the rest of the world.”
In January he asked Saudi Arabia and other OPEC nations to “bring down the cost of oil” and doubled-down on his threat to use tariffs.
It also opens the door for closer ties between the UAE and US.
And Saul Kavonic, head of energy research at MST Financial, said it was “the beginning of the end” for the alliance.
“With the UAE leaving, OPEC loses about 15% of its capacity and one of its most compliant members.”
BBC
