Abu Dhabi: The United Arab Emirates announced on Tuesday its
withdrawal from OPEC and OPEC+, effective May 1.
The oil-exporting alliances and their de facto leader, Saudi
Arabia have suffered a major blow at a time when the ongoing war with Iran has
severely affected the global energy market. The withdrawal of the United Arab
Emirates, a long-time member, from OPEC is being described as an unexpected
development, which is feared to create chaos within the organization and weaken
its overall strength.
OPEC has generally presented a united position despite
differences on issues such as geopolitics and production quotas. Gulf countries
are already facing difficulties in transporting oil through the Strait of
Hormuz, a key passage between Iran and Oman through which about a fifth of the
world’s crude oil and liquefied natural gas passes.
According to experts, the UAE's withdrawal from OPEC is being considered a major diplomatic victory for US President Donald Trump, who has long accused OPEC of raising global oil prices.
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