The United Arab Emirates (UAE) announced on Tuesday that it will exit the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, effective from May 1.
In a statement, the UAE’s energy ministry said the decision reflects its long-term strategic energy vision, rising domestic energy investment, and commitment to a responsible and forward-looking role in global energy markets.
“This decision follows a comprehensive review of the UAE’s current production policy and its current and future capacity and is based on our national interest…,” the ministry said.
OPEC, a group with currently 12 oil-producing nations, has traditionally aimed to maintain a unified stance despite ongoing internal disputes over geopolitical issues and oil production quotas. OPEC+, formed in 2016, includes the 12 OPEC members and 10 non-OPEC oil producers.
UAE’s departure for the first time since it joined in 1967 could significantly destabilize the group. In February, the UAE ranked as the third-largest oil producer in OPEC, following Saudi Arabia and Iraq.
UAE Tensions Rise Amid Gulf Rift
The announcement comes on the heels of the UAE’s escalating tensions with Saudi Arabia amid widening economic disagreements and the Yemen war against Iran-backed Houthi rebels.
Anwar Gargash, diplomatic adviser to the UAE president, criticised the Arab and Gulf response to Iranian attacks during the Gulf Influencers Forum on Monday, Reuters reported. He said the Gulf Cooperation Council (GCC) countries supported each other logistically but described their political and military response as historically weak.
Oil Spike Pressures OPEC
The UAE’s exit from OPEC comes amid recent disruptions in the oil market due to the closure of the Strait of Hormuz amid the U.S.-Iran war. In March, Kuwait, another key OPEC member, had to cut oil production due to storage issues amid disruptions at the key waterway.
The U.S.-Iran war has led Goldman Sachs to upgrade its oil forecast due to the prolonged closure of the Strait. The bank raised its 2026 Q4 oil forecasts, lifting Brent to $90 from $80 and WTI to $83 from $75, marking the fourth upward revision.
At 8:52 a.m. EST, Brent crude oil was trading 2.73% higher at $111.19 per barrel.
Notably, President Donald Trump has previously accused OPEC of inflating oil prices and “ripping off the rest of the world.” He also linked U.S. military protection of Gulf countries to oil pricing, saying OPEC members benefit from American defense while maintaining high oil prices.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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