UAE Will Leave OPEC Group on May 1: State Media

The United Arab Emirates (UAE) will exit the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ group from May 1 after nearly 60 years, Emirati state news agency WAM announced Tuesday.

The June front month Brent crude futures contract was pegged at $110.93/barrel by 3:00 p.m. U.K. time Tuesday, up from $108.76/bbl at 4:30 p.m. Monday, according to data from the Intercontinental Exchange.

The decision reflects the UAE’s long-term strategic and economic outlook with an evolving energy profile, according to the announcement. WAM also said it is based on the national interest and commitment to contributing effectively to the market’s pressing needs.

Near-term volatility in energy markets arising from the conflict between the U.S., Israel and Iran has disrupted shipping in the strait of Hormuz and the Persian Gulf, and constrained oil and gas exports. The call to a more policy-driven evolution in the UAE’s approach could offer enhanced flexibility to respond to market dynamics while continuing to contribute in a measured manner, according to the news agency.

Following the country’s exit from the cartel, the UAE will continue to bring additional production to the market in a gradual and measured manner, aligning with demand and market conditions. The country will continue to invest across the energy value chain, including oil and gas, renewables and low-carbon solutions to support long term energy systems.

The UAE joined the OPEC group in 1967. Following its departure, OPEC will consist of 11 members.

–Reporting by Jamie Aldridge, jaldridge@opisnet.com