UAE to leave OPEC, Russia has also made its decision

Russia has issued a statement following the United Arab Emirates' (UAE) announcement that it will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ memberships as of May 1. Kremlin Spokesperson Dmitry Peskov stated that they will continue to remain in OPEC+, which is formed by OPEC and some non-OPEC oil-producing countries.

Expressing his hope that OPEC and OPEC+ will continue their activities, Peskov described OPEC+ as an important organization, especially in the current environment of turmoil in global markets. Peskov said, "This format helps to significantly minimize fluctuations in energy markets and to stabilize the markets in question."

Peskov emphasized that they respect the UAE's decision to withdraw and that Russia hopes its energy dialogue with the UAE will continue.

Russian Finance Minister Anton Siluanov said that the UAE's decision to leave OPEC means that oil-producing countries will increase production, which will lower global prices in the future. Siluanov stated, "Today, we hear that one of the member countries, the United Arab Emirates, is leaving OPEC. What does this mean? It means that the country can produce oil to the extent that its production capacity allows and can bring it to the market."

Siluanov predicted that if OPEC countries carry out their policies in an uncoordinated manner after the UAE's departure, oil prices will fall.

Russia joined OPEC+ in 2016. According to International Energy Agency estimates, OPEC+ accounted for approximately 50 percent of global oil and petroleum product production last year. While the UAE is the fourth-largest producer within OPEC+, Russia ranks second after Saudi Arabia.

News Source: İHA