New York, April 29: The United Arab Emirates (UAE), one of the major oil suppliers to India, announced on Tuesday its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC). This decision comes amid the evolving geopolitical landscape following the Iran conflict. OPEC has historically influenced global oil prices significantly.
The announcement was made through the UAE’s official news agency, WAM. The UAE stated that this decision aligns with its long-term economic and strategic plans, reflecting the changes in its energy sector.
According to WAM, the UAE’s exit from OPEC will take effect on Friday. The UAE assured that it will continue to operate responsibly and will increase oil supply as needed.
The agency also highlighted that the UAE is among the world’s cheapest and lowest carbon oil producers, which will contribute to global development and pollution reduction in the future.
Last year, the UAE ranked as the fourth or fifth largest oil supplier to India, with trade reaching approximately $13.5 billion in 2024, according to United Nations data.
Among OPEC’s 12 members, the UAE is the fifth largest producer of petroleum products, but it ranks eighth globally, as reported by the U.S. Energy Information Administration.
This move by the UAE is part of its strategy to diversify its economy beyond oil dependency. WAM reported that through initiatives like “Operation 300BN,” the UAE is focusing on increasing manufacturing, boosting exports, and attracting foreign investment.
OPEC was established in 1967 and demonstrated its influence during the 1973 Israel war when Arab nations reduced oil supply, leading to a spike in global prices.
OPEC sets export quotas for its members, but the UAE will now be free from these regulations. It aims to strengthen its energy production capacity and exports in the post-Iran conflict era.
However, OPEC’s influence is not what it once was. Countries like the U.S., Russia, and Canada have emerged as major oil producers, significantly overshadowing OPEC. Nonetheless, OPEC still has a considerable impact on global oil prices through its quota system.
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My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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