Energy market shock as UAE pulls out of Opec in huge blow to global oil producers' group

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GB News

The United Arab Emirates (UEA) has pulled out of Organisation of the Petroleum Exporting Countries (Opec) and Opec+ in a major shock to the global energy market.This represents a blow to the oil exporting groups and their de facto leader, Saudi Arabia, amid the ongoing US-Iran war, with the UAE's exit to be in effect from May 1.Global energy markets have been spooked by the conflict in the Middle East, which has resulted in the Islamic Republic blocking ships travelling through the Strait of Hormuz.The effective closure of the vital route, which transports 20 per cent of the world's oil exports, has seen energy prices surge globally.Despite being a longstanding member of the group, the UAE has left the organisation in a move that is expected to cause further disarray in the region.Since the onset of the war, Opec gulf oil producers have experienced difficulty in getting their imports out of the Strait.UAE Energy Minister Suhail Mohamed al-Mazrouei asserted the move was taken after a careful look at the regional power's energy strategies.He confirmed the UAE did not raise the issue with any other country, including Saudi Arabia.LATEST DEVELOPMENTSBP profits surge by 130 as US-Iran war raises oil pricesEDF to offer electricity for millions in energy bill deal - are you eligible?Octopus Energy boss warns against energy bailout as bills set to riseThe energy minister said: This is a policy decision, it has been done after a careful look at current and future policies related to level of production.According to Mr Mazrouei, UAE's dramatic exit from OPEC will not have a huge impact on the market because of the situation in the shipping route.Anwar Gargash, the diplomatic adviser for the UAE president, slammed the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.Mr Gargash said: The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically.I expect this weak stance from the Arab League and I am not surprised by it, but I haven't expected it from the (Gulf) Cooperation Council and I am surprised by it.In February, UAE was the third-largest oil producer in the cartel behind Saudi Arabia and Iraq.The UAE was the third-largest oil producer in OPEC in February behind Saudi Arabia and Iraq.