The United Arab Emirates announced on Tuesday that it will withdraw from OPEC, with the exit taking effect on May 1.
Skyrocketing oil prices triggered by the U.S. and Israeli war with Iran, along with tanker issues in the Strait of Hormuz, form the backdrop for the UAE’s exit from OPEC effective May 1.
UAE officials pointed to the country’s evolving energy strategy, heavy investments in domestic production, and desire to maintain a forward-looking presence in global markets.
The move delivers a major blow to Saudi Arabia, which dominates OPEC and pumps about 28 million barrels daily.
President Trump, long critical of OPEC and friendly with UAE leaders, has accused the group of taking advantage of the Iran conflict to inflate worldwide prices.
The UAE and the U.S. have also jointly rebuked other Arab nations for not protecting their neighbor from Iranian aggression.
Former Trump aide Richard Goldberg asked why Gulf Arab states continue aligning with Iran and Russia instead of deepening ties with their key defender and oil partner — the United States.
The UAE’s planned production boost could provide the U.S. with valuable additional oil supplies.
