☀️ Good Afternoon! Stay informed with this latest update.
The UAE leaving Opec is seen as a major blow and potential death knell for the oil cartel.
Watch LiveBritish Broadcasting CorporationHomeNewsSportBusinessTechnologyHealthCultureArtsTravelEarthAudioVideoLiveDocumentariesHomeNewsUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessWorld of BusinessTechnology of BusinessNYSE Opening BellTechnologyWatch DocumentariesArtificial IntelligenceIntelligence RevolutionAI v the MindTech NowHealthWatch DocumentariesCultureWatch DocumentariesFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsWatch DocumentariesArts in MotionTravelWatch DocumentariesDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthWatch DocumentariesScienceNatural WondersClimate SolutionsSustainable BusinessGreen LivingAudioPodcast CategoriesRadioAudio FAQsVideoWatch DocumentariesBBC MaestroDiscover the WorldLiveLive NewsLive SportDocumentariesHomeNewsSportBusinessTechnologyHealthCultureArtsTravelEarthAudioVideoLiveDocumentariesWeatherNewslettersWatch LiveUnited Arab Emirates to quit oil cartel Opec8 minutes agoShareSaveAdd as preferred on GoogleNick EdserandArchie Mitchell,Business reportersAFP via Getty ImagesThe United Arab Emirates (UAE) has said it is quitting the Opec and Opec+ groups of major oil producing nations after nearly 60 years.
The UAE said the decision reflected its "long-term strategic and economic vision and evolving energy profile".
The decision is seen as a blow to the cartel with one analyst describing the exit as "the beginning of the end of Opec".
The Gulf state's energy minister said being a country with no obligation under the groups would provide more flexibility.
Opec was formed in 1960 by five countries - Iran, Iraq, Kuwait, Saudi Arabia and Venezuela - and its aim has been to co-ordinate production to provide steady revenue for its members.
The number of countries in the cartel has fluctuated over the years, but in addition to the five founding members it also includes Algeria, Equatorial Guinea, Gabon, Libya, Nigeria and the Republic of the Congo.
The UAE joined in 1967, and its departure will leave the cartel with 11 members.
Saul Kavonic, head of energy research at MST Financial, said it was "the beginning of the end of Opec".
"With the UAE leaving, Opec loses about 15% of its capacity and one of its most compliant members."
The UAE's decision came as the World Bank warned the war in the Middle East has caused the biggest loss of oil supply on record.
Energy prices will rise by about a quarter on average as a result this year, it said, while it could take six months for shipping through the key Strait of Hormuz to return to pre-war levels.
"The poorest people, who spend the highest share of their income on food and fuels, will be hit the hardest," said the World Bank's chief economist Indermit Gill.
The UAE's decision to leave Opec will not have an immediate impact on global energy supply, due to the ongoing closure of the Strait of Hormuz, but could lead to a longer-term boost in output.
The country has invested heavily in boosting its production capacity and has wanted for a long time to pump more oil, economists said.
David Oxley, chief climate and commodities economist at Capital Econo
0 Comments