UAE Announces Withdrawal from OPEC

The United Arab Emirates has announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC), ending nearly 60 years of membership in the oil-producing alliance. The decision will take effect from May 1, according to the BBC.

The UAE said the move was driven by long-term strategic and economic considerations, as well as changes in the global energy landscape.

The announcement is being viewed as a significant setback for OPEC and its de facto leader, Saudi Arabia.

The development comes amid heightened regional tensions, as reports indicate that Iranian actions in the Strait of Hormuz have disrupted oil shipments for OPEC member Gulf states. The narrow waterway between Iran and Oman is one of the world’s most critical energy transit routes, through which nearly one-fifth of global crude oil and liquefied natural gas passes.

The UAE, a major regional business hub and a key ally of Washington, reportedly took the decision amid concerns that other Arab states have not done enough to protect it from attacks during the ongoing conflict involving Iran.

Founded in 1960, OPEC remains one of the most influential global energy organizations, collectively accounting for more than one-third of the world’s oil production.

Following the UAE’s exit, the current membership of OPEC stands at 11 countries: Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, and the Republic of the Congo.