After the United Arab Emirates announced on Tuesday that it was withdrawing from the Organization of the Petroleum Exporting Countries (OPEC), effective May 1, Energy Minister Suhail Mohamed al-Mazrouei clarified, according to CNBC, that the UAE decided to withdraw from OPEC at a time when the move would have minimal impact on other members of the oil-producing group.
OPEC producers in the Persian Gulf are struggling to export oil through the Strait of Hormuz, a key shipping route between Iran and Oman that normally carries about a fifth of the world’s oil and liquefied natural gas. The disruption is caused by threats and attacks on vessels associated with Iran.
What did the UAE energy minister say?
“Our departure at this time is the right time for it because it will have minimal impact on the price and minimal impact on our friends in OPEC and OPEC+,” Al Mazrouei told CNBC.
The energy minister went on to say: “This has nothing to do with any of our brothers or friends within the group. We have been working together for years and years. We have the utmost respect for the Saudis for leading OPEC.”
“Once again, we appreciate the efforts of both OPEC and the OPEC+ alliance and wish them success,” he added.
Read also | The UAE is pulling out of OPEC and OPEC+, a major setback for the oil-producing bloc
While he confirmed that the matter had not been raised with any other country, when asked about discussing the move with de facto OPEC leader and regional heavyweight Saudi Arabia, he said the decision followed a thorough review of the country’s energy strategy, Reuters reported.
He said: “This is a policy decision, it was made after careful consideration of current and future policies related to production levels.”
Read also | Why the Opec+ production increase in May will not cool global oil prices
The United Arab Emirates, which became an OPEC member through Abu Dhabi in 1967, produced about 3.4 million barrels of oil a day before the US-Israeli war with Iran began on February 28. Analysts estimate the country has the capacity to pump around 5 million barrels per day, according to AP.
UAE withdraws from OPEC, OPEC+
The United Arab Emirates also said it would leave the broader OPEC+ grouping, which Russia has helped lead in efforts to stabilize global oil prices.
“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic power generation,” the UAE said, adding that it would add “additional generation to the market in a gradual and measured manner, in line with demand and market conditions.”
Read also | 8 OPEC members agree to increase oil production once Hormuz reopens
US President Donald Trump has remained a consistent critic of the oil cartel throughout his time in the White House.
Meanwhile, Brent crude, the global benchmark, was trading above $111 a barrel on Tuesday, up more than 50% from its pre-war level.
OPEC’s influence on the market has already weakened in recent years as the United States has significantly increased its oil production. Saudi Arabia produced over 10 million barrels per day before the war, while US production exceeds 13 million barrels per day.
According to Reuters, the International Energy Agency said OPEC’s share of global oil production fell to 44% in March from around 48% in February. It is expected to decline further in April as production shutdowns become more significant.
What is OPEC and OPEC+?
OPEC is a formal international organization with its own charter, a secretariat based in Vienna and officially recognized member states.
OPEC+ is a broader coalition formed in December 2016 when OPEC invited ten non-member oil-producing countries, including Russia, to coordinate production policies with it. This cooperation was later formalized through a declaration of cooperation and a cooperation charter was introduced in 2019 to provide a long-term framework for cooperation.
While OPEC serves as the official organization, OPEC+ functions as an extended alliance that includes OPEC members along with other non-OPEC producers.
Currently, OPEC consists of 12 countries, including Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Libya, Algeria, Nigeria, Gabon, Equatorial Guinea, Congo and the United Arab Emirates, although the UAE’s membership is set to end on May 1, 2026. OPEC+ brings together these member states as well as major oil producers Azerbaijan, Kazakh, Russia.
