The United Arab Emirates (UAE) has announced it will exit the Organisation of Petroleum Exporting Countries (OPEC).
Suhail Mohamed al-Mazroue
The announcement is a devastating blow to OPEC as the organisation grapples with ripple effect of the US/Israeli war with Iran which has resulted in hikes to global oil prices occasioned by disruption in production among member countries.
Suhail Mohamed al-Mazrouei, the UAE Energy Minister told Reuters that the Emirate took the decision after a careful look at the regional power’s energy strategies.
“This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” al-Mazrouei said indicating that the country did not consult with its regional leaders including Saudi Arabia before arriving at the critical decision.
OPEC members from the Gulf region have faced difficulties in exporting their oil through the Strait of Hormuz, “a chokepoint” between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas go through to the öutside world.”
Iran has used the strait as a bargaining chip for the ongoing war with US/Israel, a situation that has shaken not just international oil prices but global commerce in general.
Analysts say that the UAE’s exit from OPEC is a massive win for President Donald Trump who has consistently accused the OPEC of holding the world by the jugular through indiscriminate increase of oil prices at will.
In 20i8 while addressing the UN, Trum was quoted to have accused OPEC of “ripping off the rest of the world” by inflating oil prices.
Also, Trump has reportedly hinged U.S. military support for the Gulf with oil prices, saying that while the U.S. defends OPEC members they “exploit this by imposing high oil prices.”