UAE to exit Opec, dealing blow to oil cartel’s unity
The UAE breaks from 57 years of OPEC membership starting May 1.
The United Arab Emirates announced on Tuesday that it will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, effective May 1. The decision, revealed by the Ministry of Infrastructure, follows a comprehensive review of the country's production policy and capacity. The UAE, which joined OPEC in 1967 first as Abu Dhabi and then as its own nation in 1971, has long been at odds with Saudi Arabia over production quotas. The ministry stated the exit aligns with national interests and a commitment to meet global market demand, promising to bring additional production to market in a gradual, measured manner.
Markets initially shrugged off the announcement, with oil prices dipping slightly as traders focused on war-driven supply disruptions in the Strait of Hormuz rather than longer-term shifts in OPEC cohesion. The UAE was OPEC's third-largest producer in February, behind Saudi Arabia and Iraq. Experts point to a deepening rift with Saudi Arabia, as the UAE pushes to boost its production capacity. Meanwhile, US President Donald Trump claimed on social media that Iran had signaled willingness to reopen the Strait of Hormuz, describing the country as in a "state of collapse." The exit deals a significant blow to OPEC's unity and could reshape global oil market dynamics.
- UAE leaves OPEC and OPEC+ effective May 1, after 57 years of membership.
- The country was OPEC's third-largest producer in February, behind Saudi Arabia and Iraq.
- Exit follows long-standing disputes over production quotas and a push to boost output.
Why It Matters
This cracks OPEC's unity and could shift global oil supply dynamics amid Middle East tensions.