UAE to Exit OPEC and OPEC+ From May 1
The United Arab Emirates has announced its decision to withdraw from the OPEC and the broader OPEC+ effective May 1, in a move that could significantly reshape global oil market coordination at a time of heightened geopolitical instability.
According to a report by Emirates News Agency, the decision reflects a strategic shift aligned with the UAE’s long-term economic vision, particularly its ambition to accelerate domestic energy investment and strengthen its position as a flexible, forward-looking oil producer.
The state media statement emphasised that the move is intended to reinforce the UAE’s role as a “responsible and reliable producer” while responding to rapidly evolving global energy dynamics.
It also pointed to ongoing geopolitical tensions in the Middle East, particularly disruptions linked to the Arabian Gulf and the Strait of Hormuz, as key factors influencing the decision. These disruptions have continued to affect shipping routes and global supply stability, adding pressure to already volatile energy markets.
The exit represents a notable development for global oil governance. The OPEC, founded in 1960, has long served as a central coordinating body for major oil producers, collectively accounting for more than a third of global crude output. Its expanded alliance, OPEC+, has played a crucial role in managing supply cuts and production adjustments in recent years.
The UAE’s departure comes at a sensitive moment for the bloc, which is already navigating internal disagreements over output levels and responding to sharp price fluctuations driven by geopolitical risk, particularly tensions involving Iran and disruptions to maritime trade routes.
Energy markets have been highly sensitive to developments in the region, with recent instability pushing oil prices upward and intensifying concerns over supply security. The Strait of Hormuz, which handles a significant share of global oil and liquefied natural gas flows, remains a critical pressure point in the system.
Analysts suggest that the UAE’s exit could complicate efforts by remaining members, especially Saudi Arabia, to coordinate production policy and stabilise global supply. Diverging national interests within the alliance have already raised questions about cohesion, and this move may further accelerate fragmentation.
The UAE, a major U.S. ally and regional energy hub, has also expressed concerns about insufficient protection against repeated regional security threats, particularly attacks linked to broader geopolitical tensions in the Gulf region. These concerns have added urgency to its reassessment of multilateral energy commitments.
Despite the exit, the UAE is expected to maintain its role as a major global oil exporter, with continued influence over market fundamentals due to its production capacity and investment strategy. However, its departure from OPEC+ raises broader questions about the future effectiveness of coordinated supply management in an increasingly fragmented geopolitical environment.
OPEC is expected to release its 61st Annual Statistical Bulletin today, April 29, 2026, a report that will now be closely watched for early indications of how the bloc intends to respond to the UAE’s exit and ongoing market turbulence.
