On May 1, the United Arab Emirates withdrew from the Organization of the Petroleum Exporting Countries (OPEC). The decision was announced on April 28. UAE Energy Minister Suhail Al Mazrouei explained that the decision is partly due to the closure of the Strait of Hormuz.
„The timing is right, as the decision now will not have a significant impact on the market and price due to the closure of the Strait of Hormuz. "Everyone is constrained, including us, but making a decision now will help our friends," he said.
After leaving OPEC, the Emirates will continue to play its "responsible role by gradually and purposefully increasing production in line with demand and market conditions," the WAM news agency reported.
According to the organization's annual statistical bulletin, the UAE's production quota in OPEC in 2024 was 13.5%.
This is not the first time that individual countries have left OPEC. Qatar withdrew from the organization in 2019, Ecuador in 2020, and Angola in 2023.