On Tuesday, the United Arab Emirates announced that it would withdraw from OPEC with effect from 1 May, a move that will deprive the organization of its third-largest oil producer and further weaken its influence over global oil supplies and prices.

There have been rumors that, in recent years, the UAE has opposed OPEC’s production quotas, arguing that they are too low, which means it cannot sell as much oil to the world as it would like.

Regional politics may also be at play. Relations between the UAE and Saudi Arabia, OPEC’s largest oil producer, have been growing increasingly strained over political and economic issues in the Middle East.

The UAE’s withdrawal from OPEC would not necessarily have any direct impact on the market. This is because global oil supplies are severely constrained by the war in Iran.