DUBAI: The United Arab Emirates announced its departure from OPEC and OPEC+, marking a significant blow to the longstanding oil cartel.
The decision by the UAE, a key member of OPEC, could potentially lead to instability within the organization and diminish its influence. Historically, OPEC members have aimed to present a unified stance despite internal disagreements over geopolitical issues and production targets.
Gulf producers within OPEC have been facing challenges in exporting oil through the Strait of Hormuz a narrow waterway between Iran and Oman that facilitates roughly 20% of the world’s crude oil and liquefied natural gas shipments due to Iranian threats and attacks on vessels.
The UAE’s exit is seen as a major win for U.S. President Donald Trump, who has criticized OPEC for allegedly inflating global oil prices and “ripping off the rest of the world.”This move follows the UAE’s vocal criticism of fellow Arab nations for not doing enough to shield it from multiple Iranian assaults during regional conflicts. The country has been a vital regional economic hub and a close U.S. ally.
Anwar Gargash, the diplomatic adviser to the UAE president, voiced concerns about the regional response to Iranian aggression during a session at the Gulf Influencers Forum on Monday. “The Gulf Cooperation Council nations have supported each other logistically, but politically and militarily, their stance has been the weakest in history,” Gargash stated.
He added, “I expected stronger support from the Arab League, but I am not surprised. However, I am disappointed by the Gulf Cooperation Council’s response.”
