This text has been automatically translated, it may contain errors or inaccuracies.
THE NEAR EAST
Favorite
Remove from my list

United Arab Emirates announces withdrawal from OPEC due to crisis in the Strait of Hormuz

the departure of the United Arab Emirates, which has been a member of OPEC since 1967, may cause disorder and weaken the group, which, despite disagreements over fair and stable prices for oil producers, has sought to show a united front.

emiratos arabes dubai bandera
There's a flag from the United Arab Emirates in Dubai. Photo: Europa Press

The United Arab Emirates will cease to be a member of theAlliance    of the Organization of the Petroleum Exporting Countries (OPEC) eta OPEP+ from 1 May, due to the situation caused by the crisis in the Strait of Hormuz.

In a social media message, Arab Emirates Energy Minister Suhail al-Mazroui has thanked the Organization of the Petroleum Exporting Countries and its member countries for their "constructive collaboration for decades." After expressing his country's "commitment" to energy security, he has ensured that they will continue to provide "responsible" fuel and promote "stable markets" worldwide.

According to the news agency WAM, after analysing its current and future production capacity, the Persian Gulf country has decided to move away from the "oil-based economy" and invest in "domestic energy production." 

OPEC was founded in 1960 and its initial partners were Saudi Arabia, Iraq, Iran, Kuwait and Venezuela. The United Arab Emirates joined the organization seven years later.

OPEP+, consisting of countries such as Russia, Mexico or Kazakhstan , was born to strengthen coordination between large oil producers.

Among other things, the Organization of Petroleum Exporters  sets the prices of oil barrels, and one of its tasks is to ensure market stability. 

You might like

Load more
Advertising
X