The United Arab Emirates said on Tuesday it quit the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC+, dealing a heavy blow to the oil-exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and unsettled the global economy.
The stunning loss of the UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to present a united front despite internal disagreements over issues ranging from geopolitics to production quotas. 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.
But the UAE exit from OPEC represents a big win for United States President Donald Trump, who has accused the organisation of “ripping off the rest of the world” by inflating oil prices.