The United Arab Emirates announced Tuesday it is leaving the OPEC oil cartel after more than 50 years. The decision, effective May 1, follows an extensive review of the UAE's production policy and future capacity.
The UAE cited "geopolitical fluctuations" impacting short-term oil supplies. This comes amidst ongoing conflict that has led to surging oil prices and the blockage of the Strait of Hormuz, a critical chokepoint for global oil transport.
Speculation about the UAE's continued participation in OPEC had been growing, particularly given the nation's ambition to increase oil production. Analysts suggest leaving OPEC will grant the UAE greater flexibility in its output.
The UAE first joined OPEC in 1967.