UAE’s Shock Exit Leaves OPEC Weakened and the Global Oil Order Rewritten
Abu Dhabi said the move will let it pursue higher output targets and avoid Saudi-imposed quotas, as OPEC’s share of global production fell below 30%.
- On May 1, the United Arab Emirates officially exited OPEC and OPEC+, marking a significant shake-up for the organization that coordinates oil production among the world's largest producers.
- Abu Dhabi seeks greater independence from so-called 'Saudi-imposed' quotas to pursue ambitious output goals, including achieving five million barrels per day by 2027.
- OPEC's global energy production share fell below 30 percent following the exit. In 2025, the UAE accounted for three percent of global oil exports and about 12 percent of total OPEC exports.
- Just two days later, the UAE exited the Organisation of Arab Petroleum Exporting Countries, reflecting a geopolitical shift as the nation strengthens ties with the United States and Israel.
- Analyst Theros added, "Exiting OPEC was a clear signal from the UAE that it will no longer remain in Saudi Arabia's shadow." The nation expects to increase production independently once Strait of Hormuz exports resume.
20 Articles
20 Articles
UAE’s Shock Exit Leaves OPEC Weakened and the Global Oil Order Rewritten
Before 1 May, the once-mighty Organization of the Petroleum Exporting Countries (OPEC) had 12 members, but with the departure of the United Arab Emirates (UAE) at the start of the month, it has 11. These comprise Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, and Venezuela, together accounting for around 33% of the world’s crude oil output, about 46% of its total petroleum traded i…
Analysts Weigh Impact on Oil Supply as UAE Leaves OPEC
The United Arab Emirates (UAE) has walked away from OPEC, removing one of the Gulf’s most important producers from a quota system dominated by countries in the Arabian Peninsula, especially Saudi Arabia. The UAE announced on April 28 that it would exit OPEC and the wider OPEC+ alliance, effective May 1. For more than six decades, OPEC’s central purpose has been to have producers agree to limit oil output to support prices. But analysts raised qu…
UAE exit from OPEC sparks global oil market concerns, CRMI warns
By Gift ChapiOdekina,Abuja Abuja — The Chartered Risk Management Institute of Nigeria (CRMI) has raised concerns over potential disruptions in the global oil market following the decision of the United Arab Emirates (UAE) to exit the Organization of the Petroleum Exporting Countries (OPEC), effective May 1, 2026. In a policy advisory issued by the Institute and signed by its Registrar and Chief Executive Officer, Mr. Victor Olannye, CRMI describ…
By losing one of its largest members, the cartel will see its ability to influence the oil market reduced, which could affect futures prices as well as increase their volatility.
United Arab Emirates Withdraws From OPEC
Amid an ongoing oil supply crisis in the Middle East, the United Arab Emirates (UAE) withdrew from the Organization of the Petroleum Exporting Countries (OPEC). The decision, shocking the oil cartel, went into effect on Friday, May 1. OPEC was founded in 1960 as an alliance of just five countries—Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. In its nearly seven-decade history, the cartel has implemented production quotas to limit the supply …
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