UAE moves to exit OPEC in setback to oil cartel

Gulf state to increase production amid continued US blockade in Middle East

The United Arab Emirates is set to substantially ramp up its oil production capacity by quitting the Organization of the Petroleum Exporting Countries and the broader OPEC+ alliance this Friday, making a pivotal shift at a time when the war between the United States and Iran has caused a historic energy shock and roiled the global economy.

The Gulf nation unveiled the unexpected decision on Tuesday, stripping the 65-year-old oil cartel of one of its most influential producers. OPEC and OPEC+ have long regulated global crude markets through coordinated production quotas to balance supply and prices.

Speaking to Aletihad News Center, UAE Minister of Energy and Infrastructure Suhail Mohamed Al Mazrouei said prolonged shipping disruptions in the Strait of Hormuz have depleted global strategic oil reserves, necessitating increased investment and higher output to offset supply shortfalls.