UAE to quit OPEC and OPEC+ from 1 May
Make us a preferred source
Make us a preferred source on Google
The news: The United Arab Emirates said it is leaving OPEC from 1 May this year, this Friday, marking a major blow to the cartel that coordinates production among the globe’s largest oil producing nations.
The context: The announcement deals a major blow to the group as the cartel’s third-largest oil producer behind Saudi Arabia and Iraq and having played a key role in OPEC decision making for almost six decades. The UAE joined OPEC in 1967, seven years after the group’s founding.
OPEC has sought to balance global oil supplies and defend prices by managing the supplies of crude oil, but the war in Iran has caused massive supply disruption, providing an opportune moment for the UAE’s withdrawal.
The UAE announced the decision in a statement published on state news agency WAM, which explained that the decision aligns with the country’s long-term strategic and economic vision and the development of its energy sector, “including accelerating investment in domestic energy production.”
Without explicity stating its reasons for leaving the group, the UAE said: “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…The decision reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner.”
The UAE said that following its exit, it will continue to “act responsibly, bringing additional production to market in a gradual and measured manner” and “will continue working with partners to develop resources, supporting economic growth and diversification.”
UAE Energy Minister Suhail Al Mazrouei in a statement on X: “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.”
The UAE is also leaving OPEC+, which includes Russia.
The sources: WAM, UAE Energy Minister
