U.A.E. leaving OPEC amid Middle East energy supply crunch


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The United Arab Emirates says it is leaving the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ as of Friday, dealing a heavy blow to the oil-exporting groups and their de facto leader, Saudi Arabia, when the Iran war has caused a historic energy shock and unsettled the global economy.

The Gulf state has been a longtime member of OPEC — a cartel of leading oil-producing countries — first through its emirate of Abu Dhabi in 1967 and later when the U.A.E. became its own country in 1971. OPEC+ is an alliance with other oil-producing countries created in 2016

The stunning loss of the U.A.E. could create disarray and weaken the ​group, which has usually sought to show a ​united front despite internal disagreements over a range of issues from geopolitics to production quotas.

U.A.E. Energy Minister Suhail Mohamed al-Mazrouei told Reuters on Tuesday the decision was taken after a careful look at the regional power’s energy strategies.

Asked whether ​the U.A.E. consulted with Saudi Arabia, he said the U.A.E. did not raise ⁠the issue with any ⁠other country.

“This is a policy decision, it ‌has been done after a careful look at current and future policies related to level of production,” Mazrouei said.

A large fire sends a plume of smoke over a city
Fire and plumes of smoke rise after a drone struck a fuel tank near Dubai International Airport, in United Arab Emirates, on March 16. The U.A.E. has criticized other Arab states for failing to prevent attacks from Iran. (The Associated Press)

OPEC Gulf producers have already ​been struggling to ship exports through the Strait of ⁠Hormuz, a narrow ⁠chokepoint between Iran and Oman through ‌which a fifth of the world’s crude oil and liquefied natural gas normally passes, because of Iranian threats and attacks against vessels.

Mazrouei said the move would not have a huge impact on the market because ‌of the situation in the strait.

But the U.A.E. exit from OPEC represents a big win ⁠for U.S. President Donald Trump, who has accused the organization of “ripping off the rest of the world” by inflating oil prices.

Trump has also linked U.S. ‌military support for the Gulf with oil prices, saying that while the U.S. defends OPEC members they “exploit this by imposing high oil prices.”

The move came after the U.A.E., a regional business hub ​and one of Washington’s most important allies, criticized fellow Arab states for not doing enough to ⁠protect it from numerous Iranian attacks during the war.

Anwar Gargash, the diplomatic ⁠adviser for the U.A.E. president, criticized the Arab and Gulf response ⁠to ⁠the Iranian attacks in a ​session at the Gulf Influencers Forum on Monday.

“The Gulf Cooperation Council countries ​supported each other logistically, but ⁠politically and militarily, I think their position has been the weakest historically,” Gargash said.

“I expect this weak stance from the Arab League and I am not surprised by it, but I haven’t expected it from the [Gulf] Cooperation Council ⁠and I am surprised ‌by it,” he said.



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