What are OPEC and OPEC +, and why has the UAE quit?
Summary
The United Arab Emirates (UAE) has announced it will leave OPEC and the extended OPEC+ group starting May 1 to focus on its own national interests. OPEC is a group that coordinates oil production among member countries to influence global oil prices, and the UAE's departure removes a key member with large oil production capacity.Key Facts
- The UAE produces about 4.8 million barrels of oil per day and can increase production further.
- OPEC was created in 1960 by five oil-producing countries to control oil policies and stabilize prices.
- OPEC has 12 member countries; together with OPEC+ partners, they control about 41% of the world’s oil supply.
- The UAE is one of the few OPEC members with spare oil capacity, which helps stabilize the market during supply disruptions.
- The UAE’s foreign policy disagreements with Saudi Arabia and its growing relations with the U.S. and Israel contributed to its decision to leave.
- OPEC+ is a broader group that includes Russia and other oil producers cooperating with OPEC members since 2016.
- Other countries like Indonesia, Qatar, Ecuador, Angola, and Gabon have left OPEC in the past due to disagreements over oil production limits.
- The UAE has been increasing its influence in the Middle East and Africa and values its relationship with Israel and the U.S. as leverage in the region.
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