The United Arab Emirates announced its exit from the Organisation of Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance on Tuesday (April 28), set to come into effect on May 1. The UAE’s state news agency cited Abu Dhabi’s longer-term economic vision as the reason for the sudden exit, at a time when global oil markets have witnessed major shocks due to the US-Iran war. The war itself may have been an important trigger for the decision. What influenced the UAE to leave an alliance it has been a part of for over 50 years, and what can the markets expect as a result? What is OPEC, and when did the UAE join the group? Founded in September 1960 at the Baghdad conference in Iraq, OPEC was originally established by five founding members, namely Iran, Kuwait, Iraq, Saudi Arabia and Venezuela. Prior to its formation, Western multinational oil companies (often referred to as the Seven Sisters) largely dictated the prices paid to oil-producing nations.…