The United Arab Emirates said on Tuesday it would quit OPEC and OPEC+, dealing a major blow to the oil exporters and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and disrupted the global economy.
The loss of the UAE, a long-time OPEC member, would create rifts and weaken the group, which often wants to show a united side despite internal disagreements over a range of issues from country politics to production rates.
UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters that the decision was taken after careful consideration of the region’s energy strategies.
When asked if the UAE discussed with Saudi Arabia, he said that the UAE did not raise this issue with any other country.
“This is a policy decision, made after careful consideration of the current and future goals related to the level of production,” said the energy minister.
OPEC Gulf producers are already struggling to export through the Strait of Hormuz, the junction between Iran and Oman through which a fifth of crude oil and liquefied natural gas passes, due to Iranian threats and attacks on ships.
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Mazrouei said that this action will not have a major impact on the market due to the current situation.
But the UAE’s exit from OPEC represents a victory for US President Donald Trump, who has accused the organization of “cheating the world” by raising oil prices.
Trump also linked US military support in the Gulf to oil prices, saying that while the US is protecting OPEC members “they are exploiting this by setting high oil prices.”
The move came after the UAE, a regional business hub and one of Washington’s most important allies, criticized Arab states for not doing enough to protect them from Iran’s numerous attacks during the war.
Anwar Gargash, adviser to the president of the UAE, criticized the Arab and Gulf response to the attack on Iran at the Gulf Influencers Forum on Monday.
“The countries of the Gulf Cooperation Council supported each other in terms of programs, but politically and militarily, I think their position was not the most fragile in history,” said Gargash.
“I expect this fragile situation in the Arab League and it does not surprise me, but I did not expect it in the (Gulf) Cooperation Council and I am surprised by that,” he said.
