UAE to Quit OPEC, OPEC+ in May, Gives Reason

The United Arab Emirates (UAE) has announced plans to leave the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance effective May 1, 2026, citing changing global oil demand.

The country’s Energy Ministry said the exit will allow the UAE to better align with evolving market conditions and gradually ramp up production capacity to meet shifting demand.

The decision comes amid longstanding tensions with Saudi Arabia, as Abu Dhabi has consistently pushed to expand its output capacity, clashing with OPEC’s restrictive quotas.

Diplomatic adviser Anwar Gargash criticised regional blocs’ response to the ongoing Middle East conflict.

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

Analysts say the UAE’s departure is a major blow to OPEC unity, potentially weakening the cartel’s ability to coordinate production policies and manage supply disruptions.

For the United States, the move could prove advantageous, as a fragmented OPEC may lead to increased supply and lower global oil prices—an outcome aligned with U.S. interests.

For the UAE, the exit offers greater autonomy over its oil strategy and market share, but carries risks of diplomatic fallout within the Gulf and reduced influence in collective policy decisions.

OPEC currently accounts for about 40% of global crude production, but its share has been declining.

Recent supply disruptions and transport challenges through the Strait of Hormuz have further complicated the market, underscoring the fragile state of global oil trade.