United Arab Emirates to quit OPEC after 60 years in major blow to the oil cartel
The United Arab Emirates is quitting the Organisation of the Petroleum Exporting Countries (Opec) after 60 years, in a major blow to the cartel.As an unprecedented energy crisis caused by the Iran war exposes discord among Gulf nations, the UAE said it would leave Opec and the enlarged Opec+ group on May 1.The exit of one of the cartel’s biggest producers weakens its control of global supplies and widens a rift between the UAE and its neighbour Saudi Arabia – the effective group leader.It could also free up the UAE to increase output as it will no longer be governed by Opec quotas – though such a move cannot effectively happen until the Strait of Hormuz reopens and exports from the Persian Gulf resume.Opec’s Gulf producers have been struggling to ship exports through the Strait, a chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas normally passes, because of Tehran’s threats and attacks against vessels.The UAE’s exit represents a win for US President Donald Trump, who in a 2018 address to the UN General Assembly accused Opec of ‘ripping off the rest of the world’ by inflating oil prices.Monica Malik of Abu Dhabi Commercial Bank said: ‘This opens the door for the UAE to gain global market share when the geopolitical situation normalises.’ Gulf oil shock: The United Arab Emirates said it would leave Open and the enlarged Opec+ group on May 1DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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United Arab Emirates to quit OPEC after 60 years in major blow to the oil cartel
