The UAE was considering leaving OPEC in three years' time, a presidential advisor has said
A senior advisor to the president revealed that the UAE made the decision to leave OPEC three years ago. The country believes the world is approaching the "autumnal hydrocarbon age", and therefore needs to maximize oil revenues as soon as possible.
On?May 1, the UAE ceased its membership in the Organization of Petroleum Exporting Countries after nearly 60 years.
The decision will not have an immediate impact on the market due to the 'effective closure' of the Strait of Hormuz by 'Iran.' However, it may have a significant impact when oil flow returns to normal.
Anwar Gargash is the adviser to UAE President Sheikh Mohamed bin Zayed Al Nahyan. He said that the main reason for the country's departure was because of its OPEC production quotas, which kept output 'well below capacity.
He added, "We can see that we are nearing the end of the hydrocarbon era." "As a result, you should invest in other areas if you can produce income.
The UAE has a production capacity of 4,85 million barrels a day. It plans to increase it to 5,000,000 bpd in 2027. Before it left OPEC, and the wider OPEC+,?which includes other oil producers, led by Russia?, its production goal was closer to 3.5 million bpd.
ADNOC CEO Sultan al-Jaber said on Wednesday that the UAE will continue to be responsible and stabilizing forces in energy markets.
Saudi Arabia and the UAE, once allies, have become rivals in recent years. They disagree not only on oil policy but also on regional geopolitics, and on attracting "foreign talent" and capital.
Fighting broke out between factions in Yemen at the beginning of the year, with each side supporting their own faction. (Reporting and writing by Maha El-Dahan, Jana Choukeir, and Ahmed Elimam. Editing by Barbara Lewis.
(source: Reuters)
