The United Arab Emirates announced Tuesday that it will formally withdraw from OPEC, ending more than five decades of membership in the powerful oil-producing alliance.
According to the announcement, the decision will take effect on May 1 and will allow the UAE to increase oil production without being bound by OPEC production quotas.
The move marks one of the most significant developments in the global energy market in recent years and could have major implications for worldwide oil prices and production policies.
Analysts say the UAE’s departure could reshape dynamics within the oil cartel, which has long coordinated production levels among member nations in an effort to influence global crude prices.
The announcement is also being viewed as a major political victory for President Donald Trump, who has repeatedly blasted OPEC over high energy prices and accused the organization of manipulating the oil market.
Trump has frequently charged that OPEC was “ripping off the rest of the world” by artificially inflating prices through coordinated production cuts.
Markets are expected to closely monitor whether the UAE immediately boosts output following its exit and whether other oil-producing nations could consider similar moves.
(YWN World Headquarters – NYC)
