The United Arab Emirates (UAE) has announced its departure from the Opec and Opec+ groups of major oil-producing nations after nearly 60 years of membership.<\/p>\n
The UAE stated that its decision reflects its “long-term strategic and economic vision and evolving energy profile.”<\/b> This move is widely regarded as a significant blow to the cartel, with one analyst describing the exit as “the beginning of the end of Opec.”<\/b><\/p>\n
The Gulf state’s energy minister emphasized that operating as a country without obligations under these groups would provide greater flexibility.<\/p>\n
Opec was established in 1960 by five founding countries\u2014Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela\u2014with the primary goal of coordinating production to ensure stable revenue for its members. Over the years, the number of member countries has varied, but in addition to the founders, it currently includes Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, and the Republic of the Congo. The UAE joined in 1967, and its departure will reduce the cartel’s membership to 11.<\/p>\n
Saul Kavonic, head of energy research at MST Financial, reiterated his view that this is “the beginning of the end of Opec.”<\/b> He added, “With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members.”<\/p>\n
The UAE’s decision coincides with a warning from the World Bank that the conflict in the Middle East has led to the largest recorded loss of oil supply. The World Bank projected that energy prices would rise by approximately a quarter on average this year, and it could take up to six months for shipping through the Strait of Hormuz to return to pre-conflict levels.<\/p>\n
Indermit Gill, the World Bank’s chief economist, stated, “The poorest people, who spend the highest share of their income on food and fuels, will be hit the hardest.”<\/p>\n
Dr. Carole Nakhle, chief executive of Crystol Energy and secretary general of the Arab Energy Club, informed the BBC that the UAE’s decision “has been a long time in the making.”<\/b> She elaborated that “Abu Dhabi has pursued ambitious production capacity growth, yet often felt constrained by group quotas, especially amid uneven compliance by some members.”<\/b> Nakhle also suggested that actions by Iran, as an Opec member, may have contributed to reinforcing the UAE’s decision.<\/p>\n
According to the latest Opec figures, the UAE produces 2.9 million barrels of oil per day, while Saudi Arabia, Opec’s de facto leader, produces nine million barrels. Kavonic predicted that “Saudi Arabia will struggle to keep the rest of Opec together, and effectively have to do most of the heavy lifting regarding internal compliance and market management on its own,”<\/b> suggesting that other Opec members might follow suit. He concluded that this represents “a fundamental geopolitical reshaping of the Middle East and oil markets.”<\/b><\/p>\n
#UAE #OPEC #OilMarket #EnergyTransition #Geopolitics #MiddleEast #OilPrices #EnergyPolicy #WorldBank #OilProduction<\/p>\n","protected":false},"excerpt":{"rendered":"
The United Arab Emirates (UAE) has announced its departure from the Opec and Opec+ groups of major oil-producing nations after nearly 60 years of membership. Strategic Vision Behind the Decision The UAE stated that its decision reflects its “long-term strategic and economic vision and evolving energy profile.” This move is widely regarded as a significant […]<\/p>\n","protected":false},"author":1,"featured_media":4991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-4990","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"_links":{"self":[{"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/posts\/4990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vanak.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4990"}],"version-history":[{"count":0,"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/posts\/4990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vanak.news\/index.php?rest_route=\/wp\/v2\/media\/4991"}],"wp:attachment":[{"href":"https:\/\/vanak.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vanak.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vanak.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}