The United Arab Emirates has officially announced its decision to leave the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance, effective 1 May 2026.
The move ends nearly six decades of UAE membership in the oil producers’ group and comes amid heightened geopolitical tensions and volatility in global energy markets.
The UAE government stated that the decision aligns with its long-term strategic and economic vision, as well as its evolving energy profile. According to BBC, the UAE’s departure will reduce OPEC’s membership to 11 countries and remove about 15% of the cartel’s production capacity.
The UAE’s energy minister highlighted that leaving OPEC and OPEC+ will provide the country with greater flexibility in managing its oil production and market strategy, without the constraints of group quotas.
As reported by The Indian Express, the UAE was the third-largest oil producer in OPEC, following Saudi Arabia and Iraq.
The UAE’s energy ministry emphasised that, after its exit, the country will continue to act responsibly by gradually increasing production in line with market demand and conditions. The ministry reiterated the UAE’s commitment to a reliable and forward-looking role in global energy markets.
As highlighted by The Hindu, the timing of the UAE’s exit coincides with the ongoing conflict involving Iran, which has caused significant disruptions in the global energy sector.
The loss of a longstanding member like the UAE is expected to weaken OPEC’s cohesion and could lead to further instability within the group. Analysts have noted that internal disagreements over production quotas and geopolitical issues have challenged OPEC’s unity in recent years.
As noted in an article by Hindustan Times, the UAE’s decision follows a period of strained relations with Saudi Arabia, OPEC’s de facto leader.
The two countries have increasingly diverged on economic and regional policy matters, including competition for foreign investment and differing approaches to regional conflicts. The UAE’s exit is seen as a reflection of its desire for greater autonomy in energy and foreign policy.
"This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets," the UAE energy ministry stated.
Coverage revealed that the UAE’s withdrawal comes at a time of heightened volatility in oil markets, driven by the Iran war and disruptions in key shipping routes such as the Strait of Hormuz.
The move is expected to have significant implications for global oil supply and pricing, as OPEC+ has historically played a central role in coordinating production levels among major exporters. The situation is further complicated by ongoing tensions in the Gulf region as analysis showed.
The UAE’s exit is viewed as a strategic shift that could reshape the balance of power within the global oil market, particularly as other OPEC members assess their own positions amid evolving geopolitical dynamics.
Oil prices surged to a three-week high of $112 per barrel following the UAE’s announcement as details emerged. Market analysts attributed the price increase to concerns over supply disruptions and uncertainty regarding future production levels.
The closure of the Strait of Hormuz and the ongoing US-Iran standoff have further contributed to market volatility. "Oil above $110 per barrel reflects a market that is rapidly repricing geopolitical risk," said Jorge Leon, an analyst at Rystad Energy, as quoted by Reuters.
The UAE joined OPEC in 1967 and has been regarded as one of its most compliant members. Its departure is expected to place additional pressure on Saudi Arabia to maintain group discipline and manage market stability following reports.
Some analysts suggest that other OPEC members may reconsider their own participation in the cartel in light of the UAE’s decision. Note: This article is produced using AI-assisted tools and is based on publicly available information.
It has been reviewed by The Quint's editorial team before publishing.