The United Arab Emirates has quit the OPEC oil cartel. This decision comes amid rising global oil prices and tensions in the energy market.
The UAE joined OPEC in 1967 and remained a member when the UAE was formed in 1971. As of early Tuesday, the UAE criticized fellow Arab states for not doing enough to protect it from Iranian attacks.
OPEC Gulf producers have struggled to ship exports through the Strait of Hormuz due to Iranian threats. The situation has escalated since the outbreak of the Iran war.
Donald Trump has accused OPEC of inflating oil prices. This criticism aligns with rising Brent crude oil prices, which have reached as high as $119.50 a barrel.
Key facts:
- The UAE’s departure from OPEC will take effect on Friday.
- The Brent crude oil price has increased by 3.4% recently.
- A fifth of the world’s crude oil and liquefied natural gas passes through the Strait of Hormuz.
Anwar Gargash, a former UAE minister, stated that while Gulf Cooperation Council countries supported each other logistically, their political and military stance has historically been weak.
He expressed surprise at this weak position from the Gulf Cooperation Council, given their shared interests. The implications of this exit are significant for both OPEC and global energy dynamics.
