The United Arab Emirates said it would leave OPEC as of May 1, in a move it says will help it meet changing demand but which analysts see as a heavy blow to the organization.
“This 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,” the Gulf state said in a statement.
The country will also exit OPEC+, a group of major oil producers, and gradually increase production afterward, it added.
The move threatens to hobble the cartel at one of its most pivotal periods in recent years. After the debut of U.S. shale oil, OPEC’s power to sway markets appeared greatly diminished. It teamed up with Russia, adding market share—and pricing power. In recent weeks, OPEC producers have privately complained that attacks by Iran in the Strait of Hormuz have stripped them of their position as the main influence over swings in the oil market.... Read More: WSJ