The UAE announced its departure from OPEC on Tuesday, marking over five decades of membership. The decision followed an extensive review of the country’s production policy and future capacity.
This move was also influenced by geopolitical fluctuations affecting short-term oil supplies, notably due to the ongoing conflict in Iran that has led to a surge in oil prices as the Strait of Hormuz remains blocked.
The UAE had been considering increasing its oil output, with analysts suggesting this decision reflects the country’s desire for more flexibility outside OPEC’s constraints.
Originally part of OPEC since 1967 through Abu Dhabi and later through the establishment of the United Arab Emirates in 1971, the UAE is now set to operate independently from the oil cartel.