UAE Withdraws from OPEC and OPEC+ Alliance in Surprise Move

United Arab Emirates Quits OPEC and OPEC+, Dealing Blow to Oil Exporting Groups

The United Arab Emirates (UAE) announced on Tuesday that it has quit OPEC and OPEC+, a move that could create disarray and weaken the oil exporting groups, particularly their de facto leader, Saudi Arabia. This decision comes at a time when the Iran war has caused a historic energy shock and unsettled the global economy.

OPEC Gulf producers have been struggling to ship exports through the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world's crude oil and liquefied natural gas normally passes, due to Iranian threats and attacks against vessels. The UAE's exit from OPEC represents a significant development in the global energy landscape.

The move is seen as a big win for U.S. President Donald Trump, who has accused OPEC of "ripping off the rest of the world" by inflating oil prices. Trump has also linked U.S. military support for the Gulf with oil prices, saying that while the U.S. defends OPEC members, they "exploit this by imposing high oil prices".

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The UAE's decision to quit OPEC is believed to have been influenced by the country's criticism of fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war. Anwar Gargash, the diplomatic adviser for the UAE president, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.

The UAE's oil exports have been steadily increasing over the past two years, while global oil exports have also shown a rise. However, the country's decision to quit OPEC is expected to have a significant impact on the global energy market.