UAE exits OPEC, OPEC+ in major shift for global oil market

The United Arab Emirates has announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, in a move expected to reshape global oil dynamics.

In a statement issued Tuesday by the UAE Ministry of Energy and Infrastructure, the country said its exit will take effect from May 1, 2026, following a comprehensive review of its production strategy and long-term energy outlook.

According to the ministry, the decision reflects the UAE’s evolving priorities and its intention to adopt a more flexible approach to managing oil output.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production,” the statement said.

The UAE, one of OPEC’s key producers since joining in 1967, said the move was driven by national interest and the need to respond more effectively to changing global market conditions.

The development comes amid heightened geopolitical tensions in the Middle East, particularly involving Iran, which have disrupted supply routes and increased uncertainty in global energy markets.

Attention has also focused on the Strait of Hormuz, a vital corridor for global crude shipments, where recent threats have raised fears of supply disruptions and price volatility.

Despite these short-term challenges, the UAE said long-term global energy demand remains strong and reaffirmed its commitment to being a reliable supplier.

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the ministry stated.

While the country expressed appreciation for OPEC and its allies, it said the time had come to focus on its own strategic goals and commitments to investors and partners.

The exit marks the end of nearly six decades of UAE participation in OPEC and could weaken the cohesion of the alliance, which has played a key role in stabilising oil prices alongside major producers like Saudi Arabia.

OPEC+, formed in 2016 to include non-OPEC producers such as Russia, has been central to coordinating output and managing supply since the global oil price crash of 2014–2016.

Analysts say the UAE’s departure may complicate efforts to maintain production discipline within the group, especially as geopolitical tensions and shifting national priorities test its unity.

For oil-dependent economies such as Nigeria, the development presents mixed implications, including the potential for higher crude prices alongside increased economic uncertainty.

The UAE said it would continue investing across the energy value chain—including oil, gas, renewables and low-carbon technologies—as part of its long-term diversification strategy.

The move signals a broader shift in how major oil producers approach cooperation in an increasingly complex and evolving global energy landscape.