Abu Dhabi’s OPEC exit begins its ascent of ‘peak oil’

Although in recent years the United Arab Emirates (UAE) has frequently threatened to leave the Organization of the Petroleum Exporting Countries (OPEC), its actual announcement, on April 28, took observers by surprise. It was also conspicuous in its context. It provided only three days’ notice for exit from OPEC and OPEC+ on May 1, just five days before the next OPEC meeting. The decision was also counterintuitive to the ongoing double blockade of the Strait of Hormuz, staunching oil exports of the UAE and other Gulf states.

A subsequent Emirati official statement was elaborate but elliptical. It sought to both rationalise the decision aimed at pursuing national interest and reassure the stakeholders of its continued intention “to contribute to stability (of the oil market) in a measured and responsible manner”, promising “to bring additional production to market in a gradual and measured manner”.