The United Arab Emirates said it would leave OPEC, landing a major blow to the global oil cartel, which is already grappling with the fallout of the Iran war.
According to Emirati state media, the withdrawal will be effective from May 1.
OPEC oil production has been upended since the start of the conflict in the Middle East, with its leading producers struggling to get crude shipments out amid the closure of the Strait of Hormuz.
Leaving the cartel will give the UAE greater “flexibility” and is in line with the country’s “long-term strategic and economic vision,” its energy ministry said.
While UAE oil production has plummeted since the onset of the war in February, regional heavyweight Saudi Arabia has managed to increase revenues from crude sales despite lower exports, thanks to a pipeline giving it access to the Red Sea.