UAE leaves OPEC and OPEC+ amid energy market uncertainty

The United Arab Emirates announced it will exit both OPEC and its broader OPEC+ alliance, a decision expected to send ripples through the energy market, which is already under strain from the Strait of Hormuz blockade.

The announcement came as a key summit of the Gulf Cooperation Council was held in Jeddah.

Observers note the UAE sent its foreign minister to the extraordinary meeting, which is crucial given the fragile ceasefire backdrop in the region.

In contrast, the country's regional peers send their higher-level delegations for the summit, such as the emir of Qatar, the king of Bahrain, and the crown prince of Kuwait, according to Reuters.

In the wake of the meeting, a stunning announcement was made by Suhail Al Mazroui, who is the UAE's energy minister, about quitting OPEC and OPEC+, according to the UAE's state-run WAM news agency.

He described the decision as "a sovereign national decision grounded in the UAE's long-term strategic and economic vision".

In quitting the Saudi-led OPEC, the minister remarked, "The UAE has been a member of OPEC and OPEC Plus for a long time."

Abu Dhabi first joined the oil bloc in 1967, and after the UAE's founding in 1971, the country became part of the organization.

However, he adds, "In our future, we see that the world will demand and need more energy."

"We took this decision at a time when consumers need our attention; we are facing an unprecedented time when strategic reserves of crude products are being drained to a scary level," Al Mazouri shares.

Abu Dhabi's decision comes amid energy markets rocked by geopolitical tensions, leading several countries to draw on their strategic reserves at an alarming rate.