Web Desk

ISLAMABAD: UAE&rsquo;s OPEC exit ends a 58-year membership and challenges the group&rsquo;s unity, founded in 1960 to counter Western oil giants, OPEC later expanded into OPEC+ but now faces weaker control over supply and prices. On April 28, the UAE announced it would withdraw from both OPEC and OPEC+, effective May 1, ending its 58-year membership. Analysts say the move reflects Abu Dhabi&#39;s frustration with production quotas it felt were holding it back. Before the exit, the UAE contributed roughly 15% of total OPEC+ output. Experts cited by ABC News say it could now aim to increase production to 5 million barrels per day by 2027, up from its former quota of 3.4 million barrels per day. OPEC: The beginningBefore OPEC existed, global oil was controlled by the &quot;Seven Sisters&quot; &mdash; major Western companies including Exxon, Shell, BP, and Chevron&#39;s predecessors.&nbsp; They dominated production, pricing, and distribution, leaving oil-producing nations with little say over their own resources. In 1960, five countries; Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela founded the Organization of the Petroleum Exporting Countries in Baghdad to take back control over output, prices, and revenues. The UAE joined in 1967.&nbsp; Over the following decades, OPEC grew into a central force in global energy markets, especially after the oil shocks of the 1970s. Its influence gradually weakened, however, as the US, Russia, and others increased their own output.&nbsp; To compensate, OPEC formed the broader OPEC+ alliance with non-OPEC producers, most notably Russia, to better manage global supply. This cooperation helped the group enforce production cuts and stabilize prices.&nbsp; Today, OPEC has 12 members, with OPEC+ playing an increasingly important role alongside it. What the UAE departure meansThe departure carries real risks for OPEC.&nbsp; It could affect Saudi Arabia&#39;s leadership within the group and erode the unity that keeps quota agreements in place.&nbsp; If other members follow suit or exceed their own limits, OPEC+ could find it harder to control supply and support prices. HSBC noted, however, that the near-term market impact may be limited, partly due to disruptions around the Strait of Hormuz.&nbsp; In the longer term, though, a significant rise in UAE output could put downward pressure on prices: good news for consumers, but a challenge for OPEC&#39;s cohesion and influence.

Business

UAE’s OPEC exit ends a 58-year membership and challenges the group’s unity, founded in 1960 to counter Western oil giants, OPEC later expanded into OPEC+ but now faces weaker control over supply and prices.

UAE exits OPEC, signaling a new era for oil politics

DUBAI: The United Arab Emirates will withdraw from the OPEC and OPEC+ oil cartels to focus on &quot;national interests&quot;, a statement said on Tuesday, a bombshell announcement as energy prices soar over the Middle East war.&nbsp;The UAE, one of the world&#39;s top oil producers, which has previously baulked at OPEC production quotas, will pull out on Friday, a statement carried by the official WAM news agency said.&nbsp;&quot;This decision reflects the UAE&#39;s long-term strategic and economic vision and evolving energy profile,&quot; the statement said.&nbsp;&quot;During our time in the organization, we made significant contributions and even greater sacrifices for the benefit of all.&nbsp;&quot;However, the time has come to focus our efforts on what our national interest dictates.&quot;&nbsp;Gulf oil shipments are currently being strangled by Iran&#39;s blockade of the Strait of Hormuz, which flows past the UAE and normally carries one-fifth of the world&#39;s oil.

Middle East

The UAE announced it will leave OPEC and OPEC+, citing national interests and long-term strategy, as Gulf oil shipments face disruption from Iran’s blockade of the Strait of Hormuz.

UAE to withdraw from OPEC, OPEC+: statement

ISLAMABAD: Eight OPEC+ countries agreed to begin unwinding 1.65 million barrels per day in voluntary production cuts with a 206,000 bpd output increase, as Iran&rsquo;s Foreign Minister Abbas Araghchi said Tehran has no intention of closing the Strait of Hormuz despite rising regional tensions. According to a press release issued by the Organization of the Petroleum Exporting Countries &mdash; Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman &mdash; reviewed&nbsp;global market conditions and outlook, adding that they would closely monitor and assess market conditions. &quot;In their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023,&quot; the statement said. &quot;The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC),&quot; it added. According to the statement, the group confirmed to &quot;fully compensate for any overproduced volume since January 2024,&quot; adding that they would hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on 5 April 2026. Meanwhile, maritime security agencies said two ships were attacked in the Strait of Hormuz on Sunday as Iran pressed a second day of strikes in response to US-Israeli air raids, reported AFP. The British maritime security agency UKMTO said one ship off the coast of Oman was struck by an &ldquo;unknown projectile&rdquo; above the waterline. A fire initially reported in the engine room was later brought under control. In a separate incident, another vessel was struck by an unknown projectile, causing a fire that was later extinguished, with the ship intending to continue its voyage. The private maritime security company Vanguard Tech said the second vessel, a tanker, was located about 17 nautical miles northwest of Mina Saqr in the United Arab Emirates. Iranian state television reported that an oil tanker struck while transiting the Strait of Hormuz was sinking, broadcasting images showing thick black smoke billowing from the vessel. The Strait of Hormuz remains a key transit point for global energy trade, through which around a quarter of the world&rsquo;s oil and a fifth of liquefied natural gas shipments pass. On Saturday, Iran&rsquo;s Revolutionary Guards announced the closure of the shipping lane, warning it had become dangerous due to US and Israeli attacks. Speaking to Aljazeera, Iran&#39;s Foreign Minister Abbas Araghchi stated that the country has no intention of closing the Strait of Hormuz at present, nor any plans to do &ldquo;anything that would disrupt navigation in it at this stage.&rdquo;

Eight OPEC+ nations reaffirmed market stability commitments as ships were attacked in the Strait of Hormuz, while Iran said it has no intention of closing the key global energy shipping route

OPEC+ backs market stability as Iran rules out Hormuz closure

HONG KONG: Most Asian markets rose Monday, tracking gains on Wall Street, following US inflation figures that met expectations and soothed concerns about Donald Trump&#39;s latest tariff salvo.&nbsp;However, investors were keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the government running, which observers say could affect the release of key data.&nbsp;All three main indexes in New York ended in the green on Friday, snapping three straight losses following news that the Federal Reserve&#39;s preferred gauge of inflation rose in line with expectations, giving the bank room to cut interest rates again.&nbsp;While the 2.7 percent reading on the August personal consumption expenditures (PCE) index was up from 2.6 percent in July and well above the Fed&#39;s two percent target, policymakers are focusing on supporting the labor market after a string of weak jobs readings.&nbsp;Their cut earlier this month &mdash; the first since December &mdash; came as a closely watched guide indicated two more were in the pipeline before January.&nbsp;Attention now turns to the key non-farm payrolls (NFP) report due Friday.&nbsp;However, there are concerns that could be postponed by a possible government shutdown this week as US politicians struggle to reach a funding deal, with some analysts suggesting the Labor Department could be hit.&nbsp;With a deadline for a deal coming on Tuesday, congressional leaders on both sides are due to meet President Trump to try to resolve the issue, which could see some key services closed down.&nbsp;Hakeem Jeffries, the Democratic House leader, said on ABC that he was &quot;hopeful&quot; that a deal could be struck before the Tuesday cutoff.&nbsp;His colleague Chuck Schumer, the Democrats&#39; Senate leader, echoed that guarded optimism and said any potential breakthroughs would depend on Trump&#39;s Republicans.&nbsp;Trump has struck a defiant tone in pushing for his own agenda and last week cancelled a meeting to discuss the stalemate with senior opposition leaders, which will instead take place on Monday.&nbsp;&ldquo;If we hear early this week that the NFP report will be delayed (potentially until the govt re-opens), traders may recalibrate their approach to risk and increase their sensitivity to&rdquo; other jobs figures, said Pepperstone&#39;s Chris Weston.&nbsp;And economists at Bank of America warned that the longer the row went on, the more painful it would be for the world&#39;s top economy.&nbsp;&quot;The economic effects of a shutdown are typically modest and short-lived. Though the drag grows with the length of the shutdown, and potential federal layoffs could have more lasting effects,&quot; they wrote.&nbsp;Still, investors in most markets were in a positive mood, building on Wall Street&#39;s gains.&nbsp;Hong Kong and Seoul led the way, rising more than one percent each, while Shanghai, Sydney, Singapore, Wellington, Manila and Jakarta also advanced.&nbsp;Tokyo slipped, though the finance arm of Sony soared more than 30 percent on its debut after being spun off by the tech titan to focus on its entertainment and image sensor business.&nbsp;Sony Financial Group rocketed to as much as 210 yen in the morning, from the 150 yen it was set at last week.&nbsp;Oil prices sank on speculation OPEC+ will increase output, fanning concerns of a glut. The drop followed last week&#39;s rally on the back of mounting tensions between NATO countries and Russia, increasing the possibility of fresh sanctions on Moscow.&nbsp;Key figures at around 0230 GMTTokyo - Nikkei 225: DOWN 1.0 percent at 44,892.52 (break)&nbsp;Hong Kong - Hang Seng Index: UP 1.5 percent at 26,506.83&nbsp;Shanghai - Composite: UP 0.1 percent at 3,833.33&nbsp;Euro/dollar: UP at $1.1725 from $1.1701 on Friday&nbsp;Pound/dollar: UP at $1.3431 from $1.3405&nbsp;Dollar/yen: DOWN at 148.96 yen from 149.51 yen&nbsp;Euro/pound: DOWN at 87.28 pence from 87.30 pence&nbsp;West Texas Intermediate: DOWN 0.8 percent at $65.19 per barrel&nbsp;Brent North Sea Crude: DOWN 0.7 percent at $69.65 per barrel&nbsp;New York - Dow: UP 0.7 percent at 46,247.29 (close)&nbsp;London - FTSE 100: UP 0.8 percent at 9,284.83 (close)

A man walks on Wall St. outside the NYSE in New York

Investors are keeping a wary eye on Washington, where lawmakers have failed to reach a funding compromise to keep the government running, which observers say could affect the release of key data.

Articles tagged with "OPEC+"

UAE exits OPEC, signaling a new era for oil politics

UAE to withdraw from OPEC, OPEC+: statement

OPEC+ backs market stability as Iran rules out Hormuz closure

Most Asian markets track Wall Street higher after US inflation data