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In a stunning move, the United Arab Emirates said Tuesday it is pulling out of OPEC and OPEC+, a move that could reshape production strategy as global oil markets face supply constraints and rising demand expectations.
The departure frees the UAE from group production quotas, giving it greater flexibility to increase output and expand its role across crude, petrochemicals and natural gas markets.UAE Energy Minister Suhail al-Mazrouei told Reuters the decision followed a "careful look" at national energy strategy and was a "sovereign national decision" grounded in long-term economic priorities. He said operating outside the group will allow the UAE to better meet future global demand.
"Being a country with no obligation under the group will give us flexibility," al-Mazrouei said, adding the move comes at a time when global consumers require stable supply and strategic reserves are being drawn down.
The timing also reflects ongoing constraints on global oil flows, particularly through the Strait of Hormuz. Their departure is effective on May 1st.