The United Arab Emirates officially withdrew from the Organization of the Petroleum Exporting Countries (OPEC) on Friday, May 1, 2026, a move that signals a potential reshaping of global oil markets and underscores growing tensions in the Middle East. The decision follows weeks of missile and drone attacks targeting the UAE by fellow OPEC member Iran, as well as disruptions to oil exports through the Strait of Hormuz.
The UAE’s departure marks a significant shift for the cartel, particularly as It’s one of the top three oil producers within the organization, behind Saudi Arabia and Iraq. The country had been a member since 1967, originating with the Emirate of Abu Dhabi seven years after OPEC was founded.
According to a statement from the UAE’s Energy Ministry, the decision to exit OPEC was reached after a comprehensive review of its production policy and capacity and was determined to be in the nation’s best interest. Energy Minister Suhail Al Mazrouei explained that the UAE sought to leave at a time that would minimize disruption to other producers within the group. “Our exit at this time is the right time for it, because it will have a minimum impact on the price and it will have a minimum impact on our friends at OPEC and OPEC+,” Al Mazrouei said.
The UAE has invested heavily in increasing its oil production capacity, aiming to reach 5 million barrels per day by 2027, up from 3 million. This expansion led to demands for a larger production quota than was assigned by OPEC. The withdrawal allows the UAE to operate outside the constraints of OPEC’s output limits, potentially increasing its oil supply to the global market.
The move comes amid a broader energy crisis triggered by the ongoing conflict involving Iran, which began on February 28. Tehran has responded to the conflict by targeting Israel, U.S. Military assets, and infrastructure in Gulf countries, and has also restricted access to the Strait of Hormuz, a critical shipping lane for oil and liquefied natural gas. This disruption has threatened the foundation of the UAE’s economy.
The UAE’s decision to leave both OPEC and OPEC+ could have far-reaching consequences for the future of the oil market and regional diplomacy. The development underscores growing regional tensions and the UAE’s desire to pursue its own energy policies.
