The authorities of the United Arab Emirates (UAE) have announced their decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ with effect from May 1 and have cited the country’s push for policies as the main reason. aligned with “long-term market fundamentals”.
“We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible and lower carbon supply while supporting stable global markets,” UAE Energy Minister Suhail al-Mazroui said on social media.
This way, The Persian Gulf country shows its intention to move away from an economy based on crude oil following an analysis of its current and future capabilities, including, according to the WAM news agency, greater investment in domestic energy production and its commitment to a responsible, reliable and forward-looking role in global energy markets.
The country began membership in the organization in 1967 through the emirate of Abu Dhabi and continued membership in OPEC after the formation of the United Arab Emirates in 1971.
OPEC began its journey in 1960 with five founding partners Saudi Arabia, Iraq, Iran, Kuwait and Venezuela and until today it had 12 member countries. In addition, other states such as Russia, Mexico or Kazakhstan are part of the OPEC+ group through which coordination between some of the largest oil producers was increased.
The Organization of Petroleum Exporting Countries sets production quotas for barrels of crude oil with the aim of controlling the amount they put on the market and affecting international oil prices. In addition, it serves as a coordination forum between producing countries.
UAE believes it continues to be a “reliable and responsible” energy partner, Despite his decision to leave the international organization, he anticipates that he will continue to contribute to market stability in a “measured and responsible” manner.
“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. On the contrary, it reinforces the UAE’s ability to respond to changing market needs,” reports the WAM agency.
