US President Donald Trump has welcomed the United Arab Emirates’ (UAE) decision to withdraw from the Organisation of Petroleum Exporting Countries (OPEC).
“I think it’s wonderful,” Trump told a news conference, calling UAE President Mohammad bin Zayed Al Nagayan “very smart” and noting that “he may want to go his own way.”
OPEC is a group of leading oil-producing countries that coordinate oil production to influence global oil prices.
Trump called the UAE’s move “positive for lower petrol prices”.
On 28 April, the UAE announced its decision to withdraw from OPEC and OPEC+, effective 1 May.
This did not come as a surprise to experts as the UAE’s oil production capacity exceeds the amount allocated to the country under OPEC rules.
Trump hinted that the UAE’s decision is likely to cause problems for OPEC.
Oil prices temporarily declined after the UAE’s decision was announced. The lack of progress in talks between Iran and the US, and especially Trump’s recent announcement that the US will continue its blockade of Iranian ports, caused another significant spike in oil prices.