UAE quits Opec group of oil producers; UK government borrowing costs nearing highest since 2008 – business live
The United Arab Emirates has announced it is leaving Opec and Opec+ effective 1 May, citing a strategic review of its energy production and economic vision. The move could allow the UAE to increase oil and gas output independently, though it will still act responsibly in line with market demand. The decision marks a significant shift for the long-standing Opec member, which joined in 1967. Gulf export routes, including the Strait of Hormuz, remain a key challenge for oil shipments.
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08.42 EDTUAE quits Opec groupNewsflash: The United Arab Emirates has announced it is quitting the Opec group of oil producers.In an unexpected move, the UAE is leaving Opec and Opec+ (which includes allies such as Russia) from 1 May, a move which could allow it – in theory – to produce more oil and gas.The UAE’s energy ministry says in a statement that the decision “reflects the UAE’s long-term strategic and economic vision and evolving energy profile”, and follows a “comprehensive review” of its production policy, and its current and future capacity.Opec, created back in 1960, agrees and sets production quotes for members in an attempt to control the oil price. The UAE is a long-standing member, having joined in 1967.The UAE pledges to “act responsibly” after it quits Opec, saying it will bring “additional production to market in a gradual and measures manner” in line with demand and market conditions.In the short-term, though, the UAE – like many Opec members in the Gulf – faces the serious challenge of the blockade on the strait of Hormuz (many of the UAE’s oil export hubs are within the Gulf).ShareUpdated at 08.54 EDT
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