Steven A. Cook
The United Arab Emirates (UAE) announced on Tuesday that it is withdrawing from the Organization of the Petroleum Exporting Countries (OPEC). The decision, effective Friday, ends a fifty-eight-years membership in the cartel and deals a symbolic blow to an economic alliance that is strained by the pressures of regional war and fractured diplomacy.
The Emirati government has long taken issue with the quotas and price controls instituted by the cartel, and so it views this as in its best interest. The UAE’s departure has raised some pointed concerns about OPEC’s long-term cohesion, but it remains to be seen whether this change will have a serious effect on the cartel.
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