US EditionUAE exit weakens OPEC+ power over oil market but group to stay together: Reuters
The move removes one of OPEC’s largest producers and could increase oil price volatility, analysts said.
- On Tuesday, the United Arab Emirates announced its withdrawal from OPEC and OPEC+ effective May 1, 2026, reflecting the country's long-term strategic and economic vision.
- Seeking freedom from OPEC constraints, the UAE aims to increase production capacity to 5 million barrels per day by 2027; state-owned Abu Dhabi National Oil Company plans aggressive domestic investment.
- Oil market researcher Rory Johnston called the departure a "massive crack, arguably the biggest in the producer group's storied history," warning that Saudi Arabia now faces a weaker hand managing the market.
- Due to the ongoing closure of the Strait of Hormuz, immediate market impact remains minimal; however, analyst Jorge León warned of "significant risk of higher oil price volatility" once shipping resumes.
- ING commodity strategists note the exit may benefit importers and consumers while potentially triggering further defections; President Donald Trump has previously accused OPEC of "ripping off the rest of the world.
13 Articles
13 Articles
The UAE is leaving the OPEC oil cartel. What could that mean for oil prices?
The United Arab Emirates (UAE) has announced that on May 1, it will leave both the Organization of the Petroleum Exporting Countries (OPEC) and the larger OPEC+ group. By withdrawing, the UAE will now be able to independently decide how much oil it produces and sells. This matters – and not just because the UAE is one of the world’s top ten oil producers. The country also has the capacity to increase its output by about one million barrels per d…
Analysis by Hanna Ziady, CNN The Organization of Petroleum Exporting Countries, OPEC, is about to lose one of its most important members. The exit from the United Arab Emirates will strike a blow at the group that could put its ability to influence the world oil market at risk. UAE is the third largest crude oil producer in OPEC, after Saudi Arabia and Iraq. Its departure from the group will allow it to pump more oil, which could help lower oil …
If the once powerful oil cartel were to disintegrate after the UAE's departure, one would be particularly pleased: Donald Trump.
Why has the UAE left Opec and what impact will its departure have?
The United Arab Emirates said on Tuesday that it was quitting Opec, dealing a heavy blow to the oil-exporting cartel and its de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and rattled the global economy. But what is Opec, and how does it impact consumers? What is Opec? Founded in 1960, the Organisation of the Petroleum Exporting Countries (Opec) is a bloc of oil-exporting nations that coordinate the…
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