UAE exits OPEC, OPEC+ amid shifting energy priorities

The United Arab Emirates has announced its decision to withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, marking a major shift in global oil dynamics amid heightened geopolitical tensions.

 

The move, which takes effect from May 1, 2026, was disclosed in a statement by the UAE Ministry of Energy and Infrastructure on Tuesday, following what it described as a comprehensive review of its production strategy and long-term energy outlook.

 

“The United Arab Emirates today announced its decision to exit OPEC and OPEC+, effective 1 May 2026. This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile,” the ministry said.

 

It added that the withdrawal was driven by national interest and the need for greater flexibility in responding to changing global market conditions.

 

The UAE, a key oil producer within the alliance since joining OPEC in 1967, said it would continue to play a “responsible and reliable” role in global energy markets despite its exit.

 

“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand,” the statement noted.

 

The announcement comes against the backdrop of rising tensions in the Middle East, particularly the ongoing Iran conflict, which has raised concerns over supply disruptions along critical routes such as the Strait of Hormuz.

 

Despite these uncertainties, the UAE signalled its intention to maintain stable supply levels, pledging to bring additional production to market in a “gradual and measured manner” aligned with demand.

 

The country also highlighted its competitive advantage in producing lower-carbon crude, positioning itself as a strategic supplier in an evolving global energy mix.

 

Although the UAE expressed appreciation for OPEC and its allies, its exit is expected to test the cohesion of the alliance, which has played a central role in stabilising oil prices since the formation of OPEC+ in 2016.

 

The UAE maintained that it would continue investing across the energy value chain, including oil, gas, renewables and low-carbon technologies, as part of its broader diversification strategy.