CALGARY — The United Arab Emirates (UAE) has announced it will be leaving the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, effective May 1.The shock announcement comes after the UAE has been the target of missile and drone attacks for weeks by fellow OPEC member Iran and in the midst of a worldwide energy crisis, following shipping in the Strait of Hormuz being severely constrained, which has affected the UAE’s oil export capacity.In an official statement issued by the office of the UAE’s Minister of Energy and Infrastructure, it said the decision “follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.”.“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success,” the statement continues.The UAE has been a long-time member of OPEC — first through its emirate of Abu Dhabi in 1967 and when it became a sovereign nation in 1971.“Our exit at this time is the right time because it will have minimal impact on prices and minimal impact on our friends at OPEC and OPEC+,” UAE Energy Minister Suhail Al Mazrouei told CNBC.The minister said his country has set a goal of achieving 5 million barrels per day (bpd) of capacity by 2027 and wants more freedom to act on pursuing that objective, adding that the decision to leave OPEC is not due to years of production cuts led by Saudi Arabia.“This has nothing to do with any of our brothers or friends within the group,” Al Mazrouei said.“We’ve been working together for years and years. We have the highest respect for the Saudis for leading OPEC.”
