United Arab Emirates will leave OPEC in blow to oil cartel
The United Arab Emirates has announced its decision to leave OPEC effective May 1, which will impact the oil cartel by removing its third-largest producer. This move comes as the UAE seeks to increase its oil production capacity, having previously resisted OPEC's production quotas. The UAE's departure reflects growing tensions with Saudi Arabia and a desire for greater flexibility in its energy strategy.
- ▪The UAE will leave OPEC effective May 1, 2024, reducing the cartel's influence over global oil supplies.
- ▪The UAE has been producing around 3.4 million barrels of crude oil daily and has the capacity to produce about 5 million barrels.
- ▪The UAE's decision is influenced by its strained relations with Saudi Arabia and a need for flexibility in energy production.
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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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