The United Arab Emirates will withdraw from Organization of the Petroleum Exporting Countries (OPEC) on May 1, declared the U.A.E.’s state news agency, WAM. “This decision aligns with the United Arab Emirates’ long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production,” the statement said.
The U.A.E. has long pushed for higher OPEC production quotas as it sought to expand capacity well beyond the levels assigned to it by the cartel, CNN reports. U.A.E. produces 3-4% of the world’s oil. The move by the U.A.E. is described by some as “a major blow to OPEC and its leading member, Saudi Arabia.” The cartel collectively accounts for 36% of the world’s oil production and together controls almost 80% of the world’s total proven reserves.