The United Arab Emirates said on Tuesday that it is leaving the OPEC oil cartel after more than 50 years of membership.<\/p>\n
The UAE said its decision to exit OPEC followed an “extensive review” of its production policy and future capacity. The statement also cited “geopolitical fluctuations” affecting short-term oil supplies, a reference to the Iran war.<\/span> The conflict has caused oil prices to surge as the Strait of Hormuz, through which roughly 20% of the world’s oil supply normally flows daily, remains blocked.<\/p>\n There has been speculation about whether the UAE would continue to participate in OPEC, given the country’s desire to increase oil production, according to Capital Economics.\u00a0<\/p>\n “The bigger picture is that the UAE has been itching to pump more oil; it ultimately feels that being outside of its OPEC+ ‘obligations’ will give it more ‘flexibility’,” analysts with the investment advisory firm said in a report on Tuesday. “The UAE’s desire to pump more oil has been placated up to now by a combination of the rest of OPEC turning a blind eye to its overproduction and also raising its quota levels.”<\/p>\n The UAE first joined OPEC in 1967 through the Emirate of Abu Dhabi, and then continued after the establishment of the United Arab Emirates in 1971.<\/p>\n \u2014This is a developing story and will be updated.<\/em><\/p>\n