According to CNBC, the United Arab Emirates announced Tuesday that it will exit OPEC on May 1.
"This decision follows a comprehensive review of the UAE's production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market's pressing needs," the UAE energy ministry said in a statement.
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The move is seen as a strategic shift that could affect the group's cohesion and its ability to coordinate production cuts or increases in response to market fluctuations.
The UAE's departure from OPEC comes amid ongoing geopolitical pressures and shipping risks in s, including the Strait of Hormuz.
These factors have already contributed to volatility in oil and freight markets, with investors closely monitoring how the UAE's exit might influence regional energy dynamics and global trade flows.