UAE to withdraw from OPEC, largest petroleum organization, decision taken amid Iran war

Amid the ongoing global oil crisis, the United Arab Emirates (UAE) has taken a major decision. The UAE has withdrawn from the petroleum-rich groups OPEC and OPEC+. The UAE's Energy Minister stated, "This decision was made independently and there was no direct consultation with any other country, including Saudi Arabia. We are capable of making our own decisions."

Amid tensions with Iran, the United Arab Emirates (UAE) has taken a major decision. The UAE has decided to withdraw from the petroleum countries' groups OPEC and OPEC+. This decision has been taken at a time when it is facing tensions with the Gulf Council (GCC). This move by the UAE could be a major blow to the groups' de facto leader, Saudi Arabia. The departure of the UAE, a longtime member of OPEC, could create chaos and weaken the group, which has generally tried to show unity despite internal differences on many issues ranging from geopolitics to production quotas.

OPEC countries are already facing difficulties in sending exports through the Strait of Hormuz due to Iranian threats and attacks on ships. The Strait of Hormuz is a narrow channel between Iran and Oman, carrying a fifth of the world's crude oil and liquefied natural gas. OPEC, already facing the Strait of Hormuz blockade, is expected to face a major setback from the UAE's move.

What did the UAE government say?

The UAE's energy minister said of the decision to withdraw from OPEC and OPEC+, "This decision was made independently and there has been no direct consultation with any other country, including Saudi Arabia. We are capable of making our own decisions."The UAE government says that this decision has been taken after a comprehensive review of the UAE's production policy and its current and future potential and is based on our commitment to contribute effectively to our national interest and to meet the immediate needs of the market.

Is this good news for Trump?

The UAE's withdrawal from OPEC is a major victory for US President Donald Trump, who has accused the organization of "robbing the rest of the world" by raising oil prices. Trump already wants to weaken the group, which is dominated by Russia and Saudi Arabia.

What is OPEC and OPEC Plus?

It was established in 1960 to formulate policy regarding oil production and sales. Initially, the organization included Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela. Later, its membership expanded. Currently, it includes Saudi Arabia, Iraq, Iran, the United Arab Emirates (UAE), Libya, Indonesia, Kuwait, Nigeria, and Venezuela.

Apart from these 12 members, there are 10 more countries in OPEC Plus countries, which include Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman and South Sudan.

News is originally taken from: https://bit.ly/48VNVVS

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