United Arab Emirates will leave OPEC in blow to oil cartel
The United Arab Emirates announced it will leave OPEC and OPEC+ effective May 1, citing its strategic energy goals and desire for greater production flexibility, a move that weakens the cartel’s influence amid existing tensions with Saudi Arabia and shifting regional dynamics. The UAE, OPEC's third-largest producer, has long sought higher output than agreed upon, driven by expanded production capacity and evolving economic priorities. While the withdrawal may not immediately impact oil markets due to supply disruptions from the war in Iran, it signals a broader fragmentation within the cartel. The decision reflects growing geopolitical rifts and competition with Saudi Arabia, even as the UAE balances fossil fuel expansion with clean energy investments.
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Khalid Al-Falih, then president of the the Organization of Petroleum Exporting Countries (OPEC) conference and Saudi Arabia's energy minister, is seen behind a OPEC logo during news conference at the headquarters of the OPEC in Vienna, Austria, Nov. 30 2017. EPA-YonhapDUBAI — The United Arab Emirates said Tuesday it will leave OPEC effective May 1, stripping the oil cartel of its third-largest producer and further weakening its leverage over global oil supplies and prices.The UAE's decision had been rumored as a possibility for some time, as it pushed back in recent years against OPEC production quotas it felt had been too low — meaning it wasn't able to sell as much oil to the world as it had wanted.“Having invested heavily in expanding energy production capacity in recent years, the…
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