The United Arab Emirates will leave OPEC and OPEC+, dealing a severe blow to the oil-exporting groups and their de facto leader, Saudi Arabia, at a time when the war with Iran has caused a historic energy shock and destabilized the global economy.
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The loss of the UAE, a long-standing OPEC member, could create disorder and weaken the group, which has generally tried to show a united front despite internal disagreements on a wide range of issues, from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei has stated that the decision was made after a careful analysis of the regional power’s energy strategies. “This is a policy decision, made after a thorough review of current and future policies related to the production level,” the Energy Minister noted.
The UAE’s exit represents a victory for Trump, who has accused the organization of “squeezing the rest of the world” by inflating oil prices
Gulf producers within OPEC have already been struggling to export through the Strait of Hormuz, a strategic point between Iran and Oman through which normally a fifth of the world’s crude oil and liquefied natural gas passes, due to Iranian threats and attacks against vessels.
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The UAE’s exit from OPEC represents a victory for US President Donald Trump, who has accused the organization of “squeezing the rest of the world” by inflating oil prices. Trump has also linked US military support for the Gulf to oil prices, noting that while the United States defends OPEC members, they “take advantage to impose high prices”.
The decision comes after the UAE, a regional business hub and one of Washington’s most important allies, criticized other Arab states for not doing enough to protect them from numerous Iranian attacks during the war. Anwar Gargash, diplomatic adviser to the UAE president, criticized the Arab and Gulf response to the Iranian attacks.
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