By Jemimah Wellington, JKNewsMedia Correspondent
EXIT FROM the Organisation of Petroleum Exporting Countries (OPEC) and the wider Organization of the Petroleum Exporting Countries Plus (OPEC+) alliance will take effect on May 1, the United Arab Emirates (UAE) announced on Tuesday.
JKNewsMedia.com reports that the decision was disclosed through the UAE state run WAM news agency following disagreements within the oil alliance over production quotas and concerns in Abu Dhabi over restrictions on its expanding production capacity.
“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 said.
The Emirati government stated that it would continue to act cautiously in global energy markets by increasing production “in a gradual and measured manner” based on demand and prevailing market conditions despite exiting OPEC and OPEC+.
Also, the withdrawal ends a longstanding association that dates back to 1967 when Abu Dhabi first aligned with OPEC before the UAE formally joined following its formation in 1971.
JKNewsMedia.com also reports that disagreements within the alliance have centred on production caps, with officials in Abu Dhabi expressing dissatisfaction over limits placed on output despite investments aimed at expanding capacity.
The UAE has invested billions of dollars to boost production and has pushed for higher baselines within OPEC+, while Saudi Arabia has maintained support for tighter controls on supply.
Saudi Arabia has traditionally held significant influence over OPEC production policies as a dominant member of the organisation.
However, the wider OPEC+ group includes Russia and other allied oil producing nations and was formed to coordinate supply levels and stabilise global crude markets.
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