UAE announces May 1 exit from OPEC and OPEC+

The United Arab Emirates (UAE) has announced its decision to withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, marking a significant shift in global energy dynamics amid ongoing geopolitical tensions.

The exit, effective May 1, 2026, follows a strategic review of the country’s production policy and long-term energy priorities, with the UAE signalling a greater focus on flexibility, domestic capacity expansion and alignment with national economic interests.

The move represents a major development for the producer group and its de facto leader, Saudi Arabia, potentially weakening cohesion within the alliance at a time when the global energy system is already under strain.

The decision comes against the backdrop of escalating regional tensions linked to the Iran war, which has disrupted supply flows and unsettled global markets. Gulf producers have faced increasing challenges shipping exports through the Strait of Hormuz, a critical chokepoint through which around a fifth of global crude oil and liquefied natural gas typically passes.

The UAE said the withdrawal aligns with its long-term strategy to strengthen its position as a reliable and flexible energy producer, while continuing to support global supply stability. The country emphasised that it will maintain a responsible production approach and gradually increase output in line with market demand.

The government added that it will continue investing across the energy value chain, including oil and gas, renewables and low-carbon solutions, as part of its broader economic diversification agenda.

Despite exiting the alliance, the UAE reaffirmed its commitment to global market stability and ongoing cooperation with both producers and consumers, noting that the move enhances its ability to respond to evolving market conditions.

The decision also follows criticism from UAE officials regarding regional security coordination. Anwar Gargash, Diplomatic Adviser to the UAE President, said the political and military response from Gulf and Arab partners to recent Iranian attacks had been weaker than expected.

“The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically,” Gargash said.

The withdrawal could introduce further uncertainty into global oil markets, particularly as OPEC+ has historically sought to present a unified front in managing production and stabilising prices.

It also comes as US President Donald Trump has repeatedly criticised OPEC, accusing the group of inflating oil prices and linking US security support in the Gulf to energy market dynamics.

The UAE, a longstanding member since 1967 through Abu Dhabi, said it remains committed to playing a constructive role in global energy markets, even as it transitions towards a more independent production strategy.

-- Agencies