The UAE's exit from OPEC will deliver a painful blow to the oil cartel and its de-facto leader. 

The Gulf State is walking away from the group after nearly six decades - following longstanding tensions with Saudi Arabia.

The UAE suggests this will help it meet growing global energy demand in the long term, and give it more flexibility.

Middle East Analyst Gordon Robison says OPEC is already a shadow of its former self.

"I think a number of the smaller countries in OPEC are beginning to be uncomfortable with the degree to which Saudi Arabia treats them as essentially subordinates."

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