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UAE to exit OPEC, OPEC+ alliance amid concerns on regional security
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UAE’s decision to exit the oil producing groups will be effective from May 1, 2026
The UAE’s decision to leave the group after more than five decades is seen as a big blow to the oil exporting countries and their de-facto leader Saudi Arabia. | Credits: Shutterstock
The United Arab Emirates (UAE) on Tuesday announced that it will exit global oil exporting organizations OPEC and OPEC+. The announcement came ahead of Vienna meeting of OPEC countries on Wednesday.
UAE’s minister of energy and infrastructure Suhail Mohamed al-Mazrouei said the decision will be effective from May 1, 2026.
“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. We remain committed to energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets,” Mazrouei said in a post on X.
The UAE’s decision to leave the group after more than five decades is seen as a big blow to the oil exporting countries and their de-facto leader Saudi Arabia. This is also crucial as the global energy supplies are already facing challenges due to closure of Strait of Hormuz amid the ongoing war in West Asia.
UEA roughly accounts for 8-9% of global oil exports, however, according to Mazrouei, the move would not significantly impact the market given the situation in the strait.
“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” a statement from the UAE government said.
Why did the UAE decide to exit OPEC?
The official statement said the decision is based on the UAE’s national interest and to meet the future energy demands. “This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” it said.
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“A stable global energy system depends on flexible, reliable, and affordable supply. The UAE has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability,” it added.
A big win for Donald Trump?
The developments come as a major win for US President Donald Trump as he has been gunning or the organization suggesting that it has been “ripping off the rest of the world” by inflating oil prices.