The United Arab Emirates announced on Tuesday, 28 April, that it will leave the Organization of the Petroleum Exporting Countries (OPEC) effective May 1, removing one of the group’s top producers and further testing the cartel’s influence over global oil markets.
The decision, shared through the UAE’s state-run news agency WAM, also includes the country’s withdrawal from the broader OPEC+ alliance, which coordinates with other producers like Russia to help manage oil supplies and prices.
In its statement, the UAE described the move as part of its long-term economic strategy and shifting energy priorities.
Energy Minister Suhail al-Mazrouei noted the country’s respect for Saudi Arabia’s leadership in OPEC and stressed that the exit was not the result of a dispute with Riyadh.
The UAE, which joined OPEC in 1967 through its emirate of Abu Dhabi, currently ranks as the cartel’s third-largest producer. Before recent regional conflicts, it was producing around 3.4 million barrels of crude per day, with the potential to reach about 5 million barrels.
Why Now?
Analysts point to the UAE’s desire for greater flexibility and freedom. The country has felt constrained by OPEC’s production quotas and wants the freedom to bring more oil to market as it sees fit.
This comes amid broader strains within the group, including Qatar’s departure in 2019, and regional tensions with Saudi Arabia over political and economic issues.
Experts also suggest the exit reflects the UAE’s evolving needs, including stronger ties with major energy consumers like China and a more competitive stance in the region.
At the same time, the country continues investing in cleaner domestic energy sources while expanding its fossil fuel capacity.
Impact on OPEC and Oil Markets
OPEC, founded 65 years ago, accounts for roughly 40 percent of the world’s crude oil supply and has long played a key role in influencing energy prices. Losing the UAE reduces the group’s spare production capacity and could make it harder to coordinate supply adjustments during volatile periods.
However, any immediate effects on global oil prices may be limited by current disruptions. Oil markets are already under pressure from ongoing conflicts, with Brent crude trading above USD 111 (EGP 5,881) per barrel, more than 50 percent higher than pre-war levels.
Experts warn that a weaker OPEC may struggle more in the future to stabilize prices effectively.
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