The United Arab Emirates (UAE), in a surprise move, said on Tuesday it was leaving the Organization of the Petroleum Exporting Countries (OPEC) and its wider grouping, OPEC+, in a matter of days, dealing a heavy blow to the groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and unsettled the global economy.
The decision is effective as of May 1, the UAE said.
"This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable and forward-looking role in global energy markets," the statement shared by the state media said.
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision was taken after a careful look at the regional power's energy strategies.
Asked whether the UAE consulted with Saudi Arabia, he said the UAE did not raise the issue with any other country.
"This is a policy decision, it has been done after a careful look at current and future policies related to the level of production," said the energy minister.
OPEC Gulf producers have already been struggling to ship exports 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 normally passes, because of Iranian threats and attacks against vessels.
Mazrouei said the move would not have a huge impact on the market because of the situation in the strait.
But the UAE exit from OPEC represents a win for U.S. President Donald Trump, who has accused the organization of "ripping off the rest of the world" by inflating oil prices.
Trump has also linked 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."
The move came after the UAE, a regional business hub and one of Washington's most important allies, criticized fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war.
Anwar Gargash, the diplomatic adviser for the UAE president, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.
"The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically," Gargash said.
"I expect this weak stance from the Arab League, and I am not surprised by it, but I haven't expected it from the (Gulf) Cooperation Council, and I am surprised by it," he said.
The UAE had been a longtime member of OPEC, first through its emirate of Abu Dhabi in 1967 and later when the UAE became its own country in 1971.
But the UAE has been increasingly trying to leverage its own foreign policy in the Middle East, which has contradicted some positions of Riyadh over time.
