UAE to exit OPEC, OPEC+ in major shift amid global oil tensions

The United Arab Emirates has announced it will exit the OPEC and the broader OPEC+ alliance, in a significant development for global oil markets.

The decision, announced on April 28, will take effect from May 1, with the UAE stating that the move aligns with its national interest and long-term energy strategy.

The UAE, a long-standing member of OPEC, said it plans to focus on expanding its own production capacity and investments in domestic energy projects, while continuing to support stable global energy markets.

The exit comes amid heightened geopolitical tensions in the Middle East, particularly disruptions in the Strait of Hormuz linked to the Iran conflict, which have already impacted global oil supply chains.

Analysts say the move is a major setback for OPEC, which relies on coordinated production cuts among member countries to manage oil prices. The departure of the UAE — one of the group’s key producers — could weaken its ability to control supply and maintain price stability.

The development also reflects underlying differences within the alliance over production quotas and long-term energy strategies. The UAE has, in recent years, pushed for greater flexibility to increase output, signalling a shift towards a more independent approach.

With the UAE stepping away, OPEC’s cohesion is expected to be tested, particularly at a time when global oil markets are already volatile due to geopolitical tensions and supply uncertainties.

The move could lead to increased competition among oil producers and greater fluctuations in crude prices, as individual countries pursue independent production strategies rather than coordinated action.

The UAE’s decision marks one of the most significant changes within the oil-producing bloc in recent years and is likely to have wider implications for global energy markets, supply chains and pricing trends.