The United Arab Emirates is to quit Opec and Opec+ next month after almost six decades of membership in the international oil groups.
The decision comes as the UAE looks to ramp up its production capacity, and has said leaving the groups of major oil producing nations will help it meet the growing global energy demands in the long term.
The BBC reports analyst Saul Kavonic, head of energy research at MST Financial, has described the move as "the beginning of the end of Opec".
The UAE's energy minister has claimed no longer being members of the groups will give the country more flexibility.
It's news which will be welcomed by US President Donald Trump who has previously accused Opec of "ripping off the rest of the world" and threatened to impose tariffs on members if they did not act to lower oil prices.
Dr Carole Nakhle, chief executive of Crystol Energy and secretary general of the Arab Energy Club, told the BBC the UAE's decision "has been a long time in the making".
She added: "Abu Dhabi has pursued ambitious production capacity growth, yet often felt constrained by group quotas, especially amid uneven compliance by some members."
FSTE100
The UK's flagship share index, the FTSE 100, was down 25 points at 10,284 shortly after opening this morning.
Brent crude oil futures were up 1.02% trading at $105.26 a barrel.
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