The United Arab Emirates (UAE) has announced its decision to leave the Organisation of the Petroleum Exporting Countries (OPEC), effective 1 May 2026.
This move significantly impacts OPEC's influence over global oil production as the UAE is one of its largest producers, reported Reuters.
The decision comes amidst an energy crisis exacerbated by the ongoing conflict in Iran, highlighting tensions among Gulf nations.
UAE Energy Minister Suhail Mohamed al-Mazrouei, in his first statement since the announcement, told the news agency in a telephone interview that the decision followed a thorough review of the nation's energy strategies.
He said that the UAE had not consulted with other countries regarding its exit.
“This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” added Mazrouei.
The withdrawal could allow the UAE to increase its oil output independently as it will no longer be subject to OPEC production quotas.
International oil prices reacted to the news, with gains slightly reduced following the announcement by the UAE.
However, Mazrouei indicated that he does not anticipate an immediate substantial impact on markets due to existing constraints in the Strait of Hormuz.
Gulf producers affiliated with OPEC have encountered difficulties in exporting oil through the strait. This crucial passage between Iran and Oman typically handles around 20% of the world's crude oil and liquefied natural gas, but Iranian threats and hostility towards vessels have caused disruptions.
As these export issues persist, the International Energy Agency reported that the share of global oil production from the extended OPEC+ group of countries declined to 44% last month, from approximately 48% in February 2026. This figure may decrease further in April due to intensified production constraints, and again in May with the departure of the UAE, the fourth-largest producer from the group.
The UAE's exit from OPEC aligns with past criticism from US President Donald Trump, who in 2018 accused the organisation of inflating oil prices.
Trump connected US military support in the Gulf to oil prices, asserting exploitation by high costs.
