The United Arab Emirates has announced its decision to exit the OPEC and OPEC+, a move that is being seen as a significant development in the global energy landscape with expected implications for international oil markets.
According to the Emirati news agency, the decision will take effect from May 1, 2026, and officials have stated that the move is aimed at achieving full autonomy in oil production and sales policies.
It is important to note that OPEC was established in 1960, with key members including Saudi Arabia, Iran, Iraq, and Kuwait, while OPEC+ was formed in 2016 through an alliance between OPEC and non-OPEC countries, including Russia.
OPEC and OPEC+ play a crucial role in determining global oil production levels and prices, collectively controlling an estimated 40 to 50 percent of the world’s oil supply, making their decisions highly influential.
According to a report by OilPrice.com, the announcement by one of OPEC’s third-largest oil producers comes at a time when the global oil market is already facing instability, with the Iran conflict entering its ninth week and the Strait of Hormuz experiencing severe disruptions, while crude oil prices have risen above 110 dollars per barrel.
The report further indicated that this decision was not sudden but the result of long-term planning, as disagreements between the UAE and Saudi Arabia over production limits had been intensifying.
Under the OPEC+ agreement, the UAE’s production was capped at around 3 million barrels per day, whereas its actual capacity exceeds 4 million barrels per day, and the country aims to increase output to 5 million barrels per day by 2027.
