UAE withdraws from Opec and Opec+ to prioritize national interests
via The Namibian3 min read
The United Arab Emirates has announced its decision to leave the Organisation of the Petroleum Exporting Countries Opec and Opec+, effective May 1. This move is driven by the UAE's long-term strategic and economic vision, aiming to focus on national interests. The UAE energy minister, Suhai al-Mazrouei, stated that the decision followed a careful review of the regional power’s energy strategies and was not discussed with other countries, including Saudi Arabia. The withdrawal of the UAE, a longstanding Opec member, could weaken the bloc, which has historically strived for a united front despite internal disagreements. The UAE had been a member of Opec since 1967 through Abu Dhabi, and then as its own country from 1971. This departure comes as Opec's market power has waned due to increased US crude oil production. Additionally, the UAE and Saudi Arabia have shown increasing competition in economic and regional political spheres. Rystad Energy noted that losing a member with 4.8 million barrels per day of capacity, and ambitions for more, significantly impacts the group's ability to manage the market, leaving Saudi Arabia with more responsibility for price stability.
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This summary was AI-generated from a story originally published by The Namibian.
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