United Arab Emirates leaving OPEC, effective May 1
The UAE was the third-largest producer in OPEC in February, behind Saudi Arabia and Iraq.
AbJimroe
The United Arab Emirates announced Tuesday that it will exit OPEC on May 1, in a major blow to the cartel that coordinates production among many of the world's largest oil producers.
The shock announcement comes after the UAE was the target of missile and drone attacks for weeks by fellow OPEC member Iran. Tehran's blockade of the Strait of Hormuz has also severely constrained the UAE's ability to export oil, threatening the foundation of its economy.
The UAE was the third-largest producer in OPEC in February behind Saudi Arabia and Iraq. It joined OPEC in 1967, seven years after the organization was founded. It has played an influential role in the group's decisions.
The UAE did not clearly state why it decided to leave OPEC now. The energy ministry said the decision was based on the UAE's national interest following a comprehensive review of its production policy and capacity.
"We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success," the energy ministry said in a statement.
The UAE said its exit from OPEC would give it more flexbility to respond to market dynamics.
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