"The decision has been preceded by a very careful and lengthy evaluation of all our strategies," said Suhail Al Mazrouei, Minister of Energy of the United Arab Emirates, according to Bloomberg.
"The decision is taken at the right time, as we see it, because it will not have a major impact on the market. The market is characterized by too little oil supply," he continued.
In the interest of the nation
The decision is justified as being in the national interest and in line with the country's long-term strategic and economic plans. It is also described as a strategic adjustment to the new circumstances that prevail as a result of the Iran war.
The United Arab Emirates – which has been a member of OPEC for 60 years – has also decided to leave the broader cooperation between major oil countries within what is known as OPEC-plus, which also includes Russia.
The decision is effective May 1, the agency reports.
According to Suhail Al Mazrouei, the decision means that the United Arab Emirates, in the wake of the Iran war, can adjust its oil production without having to take into account collective decision-making within OPEC.
Gradual increase
According to the country's state news agency WAM, the United Arab Emirates, outside OPEC, will gradually increase its oil production in a responsible manner and in line with demand and market conditions.
Bloomberg reports that the United Arab Emirates has been on a collision course with OPEC and regional rival Saudi Arabia for several years over increased production capacity in the emirate.
Saudi Arabia and the United Arab Emirates have also supported different sides in the war in Yemen.
Choked exports
According to Bloomberg, the United Arab Emirates - which consists of seven emirates, including Abu Dhabi and Dubai - has come close to leaving the cartel several times before, but has never taken the full step.
The country's exports of oil and gas have practically come to a standstill, as the Strait of Hormuz - the only shipping lane out of the Persian Gulf - was first blocked by Iran and then, for a time, by the United States.
The price of North Sea oil (Brent) was near $113 per barrel before Tuesday's announcement and fell back to $111.50 per barrel. The levels are almost 60 percent above the price of oil before the US and Israel launched a bombing campaign against Iran on February 28.
