The United Arab Emirates (UAE) has officially announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) effective May 1. The surprise decision is a major blow to the oil cartel, as the UAE is the group's third-largest producer after Saudi Arabia and Iraq.
The drastic move comes after tensions escalated with fellow member Iran, which has launched missile and drone attacks on the UAE in recent weeks. Tehran's attacks on the Strait of Hormuz have also crippled the UAE's oil exports, which are the lifeblood of the country's economy.
In an official statement, the UAE's Ministry of Energy explained that the decision was made in the national interest after a comprehensive review of production policies. However, the specific reasons behind the sudden withdrawal were not disclosed in detail to the public.
Despite the withdrawal, the UAE stressed its commitment to maintaining the stability of the global oil market. The country plans to continue working with producers and consumers outside the official OPEC framework to ensure that the balance of supply and demand remains intact.
The withdrawal is expected to give the UAE more flexibility to set its own production quotas without being bound by the cartel's mandate. The move marks the end of the UAE's 57-year involvement in the organization, which it has been a member of since 1967.
