The United Arab Emirates (UAE) has announced its decision to withdraw from the Organisation of Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance.
The Gulf state made this known on Tuesday, April 28, saying it takes effect May 1, 2026.
The decision marks a significant shift in global energy geopolitics, as the UAE was the group’s fourth-largest producer, coming after Saudi Arabia, Iraq, and Iran.
UAE Energy Minister Suhail Al Mazrouei stated that the move reflects the nation’s “long-term strategic and economic vision” and its desire to operate more independently in a “new energy age.”
Mazrouei thanked OPEC for what he described as “constructive cooperation” over the decades since the group was formed.
“The UAE’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation,” the UAE Energy Minister stated in a statement released on Tuesday, posted on X.
He added that the country remains committed to global market stability, “energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets.”
Analysts believe that by leaving the cartel, the UAE is no longer bound by strict production quotas, allowing the country to ramp up its output toward its target of 5 million barrels per day (bpd) by 2027.
Data released by OPEC shows that the UAE produced about 2.9 million barrels per day in 2024, while Saudi Arabia produced 9 million barrels per day in the same period.
This also comes amid a severe global energy shock due to the ongoing U.S.-Iran conflict, which has significantly disrupted the Strait of Hormuz, leading to higher prices of oil and gas. Reports suggest the UAE felt regional allies and the cartel were not doing enough to address its specific security and economic concerns during the crisis.
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Analysts have noted that the move aligns with shifting international dynamics, particularly following recent diplomatic engagements and pressure from the United States regarding the global oil price surge. U.S. President Donald Trump had in January criticised OPEC for what he considered the high cost of oil and threatened to use increased trade tariffs if it was not brought down.
OPEC was formed in September 1960 with founding members, which include Saudi Arabia, Iran, Iraq, Kuwait and Venezuela. The group was founded to protect the interests of major oil-producing nations by coordinating production, stabilizing prices, and securing a steady income for member states to fund development projects.
Apart from the founding members, other member countries are Angola, Equatorial Guinea, Nigeria, Libya, Gabon, and Congo.
The UAE joined OPEC in 1967. Its exit will reduce OPEC member states to 11. The exit follows other notable departures in recent years, such as Qatar in 2019 and Angola in 2024.
Impact on the Market and OPEC
Weakened Influence: The loss of a major producer like the UAE significantly diminishes OPEC’s collective power to manage global supply and influence prices.
Price Volatility: Following the announcement, Brent crude prices saw an immediate uptick (reaching $111 per barrel) as markets reacted to the uncertainty of future supply coordination.
The UAE has emphasized that it will remain a “responsible and reliable” energy partner, intending to bring additional production to the market in a “gradual and measured manner” rather than causing a sudden supply shock.
The country further stated that it would continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions, to support resilience and long-term energy system transformation.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X