UAE Quits OPEC After Nearly 60 Years in Blow to Oil Cartel

The United Arab Emirates (UAE) has said it is quitting the Opec and Opec+ groups of major oil producing nations after nearly 60 years. 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. The UAE joined Opec in 1967 and its departure will leave the oil cartel with 11 members. Saul Kavonic, head of energy research at MSTFinancial, 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." According to the latest figures from Opec, UAE produces 2.9 million barrels of oil a year. Saudi Arabia, the de facto leader of Opec, produces nine million barrels of oil. "Saudi Arabia will struggle to keep the rest of Opec together, and effectively have to do most of the heavy lifting regarding internal compliance and market management on its own," Kavonic said, adding other Opec members could follow suit. 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.