UAE announces it will quit OPEC and OPEC+, as of the 1st of May. To bring additional production to the market, in a "gradual and measured manner, aligned with demand and market conditions"
Importance
Level 1
- Decision taken after looking at the strategies for the UAE in relation to the energy field, the petroleum sector and other areas.
- Will enable work to occur with partners and investors to ensure future requirements are being met.
- See that the world will demand and need more energy.
- Doing this at the correct time, without significantly impacting the market, due to constraints around the Strait of Hormuz.
- Did not directly consult with anyone on this decision.
- Decision taken at a time when consumers need attention, facing an unprecedented period where strategic energy reserves are being depleted to a "scary" level.
- "This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers".