UAE to Exit OPEC After More Than 50 Years Amid Global Energy Turmoil

Picture Credit: Reuters

The United Arab Emirates has announced it will withdraw from the Organization of the Petroleum Exporting Countries after more than five decades of membership, marking a major shift in global energy politics. The decision will take effect on May 1 and will also end the country’s obligations within the broader OPEC+ group, which includes several non-member producers led by Russia.

Officials said the move reflects the UAE’s evolving energy strategy and its desire for greater independence in managing oil production. According to Energy and Infrastructure Minister Suhail Al Mazrouei, leaving the producers’ alliance will allow the country to respond more flexibly to changing market conditions. The decision comes at a time when global energy markets are under strain following supply disruptions linked to the ongoing conflict involving Iran.

The war has significantly disrupted oil supplies, particularly after shipping routes through the Strait of Hormuz were affected. The crisis contributed to a sharp drop in OPEC production, which fell by nearly 27 percent in March to around 20.79 million barrels per day. The conflict has wiped out roughly 7.88 million barrels per day of output from the group, marking one of the largest supply collapses in OPEC’s history.

The UAE, the world’s seventh largest oil producer, had been pumping around 3.4 million barrels per day before the conflict but saw output fall sharply as regional disruptions intensified. Despite the temporary decline, the country’s long-term production capacity has been expanding rapidly. State energy giant Abu Dhabi National Oil Company has invested heavily in boosting production and is targeting a capacity of 5 million barrels per day by 2027 as part of a $150 billion development program.

Analysts say leaving OPEC could allow the UAE to increase production more freely and help stabilize global markets at a time when spare capacity is historically tight. Much of the country’s crude exports are shipped to Asia, with major buyers including India, China and Japan. By operating independently, the UAE hopes to play a larger role in meeting global energy demand during a period of heightened volatility.

The UAE joined OPEC in 1967, becoming one of the organization’s founding Gulf members alongside major producers such as Saudi Arabia and Kuwait. Its departure follows the earlier exit of Qatar in 2019, signaling a gradual shift in how Gulf producers manage their roles in the global energy system.