United Arab Emirates says it will leave OPEC effective May 1

The UAE had been a long-time member of OPEC, first through its emirate of Abu Dhabi in 1967 and later when the UAE became its own country in 1971.

The UAE made the announcement via its state-run WAM news agency.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the UAE said.

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the country added.

Saudi Arabia long has been considered a heavyweight of OPEC, an oil cartel based in Vienna that has seen some of its market power wane as the United States increased its production of crude oil in recent years.

Saudi Arabia and the UAE increasingly have competed over economic issues and regional politics, particularly in the Red Sea area.

The two countries had joined in together in a coalition to fight against Yemen’s Iran-backed Houthi rebels in 2015.

However, that coalition broke down into recriminations in late December, when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.

Saudi broadcasters long based in Dubai, the economic hub of the UAE, have pulled back to the kingdom in recent months as well as the tensions rose.

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