The United Arab Emirates announced its withdrawal from OPEC and OPEC+ effective May 1, 2026. This marks a significant change in the global oil landscape.
The UAE has been a member of OPEC since 1967. Its exit is driven by rising global energy demand and a focus on national interests.
As of midday, the UAE accounted for about 12% of OPEC’s total output. It possesses significant spare production capacity of approximately 4.8 million barrels per day.
The UAE aims to increase its production capacity to 5 million barrels per day by 2027. This move could ignite a price war among Gulf producers following tensions from the Iran war.
Relations between the UAE and Saudi Arabia have grown increasingly frosty over various political and economic issues. The UAE’s departure is seen as a major blow to OPEC’s influence over the oil market.
Key facts:
- The UAE accounted for about 12% of OPEC’s total output before its exit.
- OPEC currently controls about 30% of global oil supply.
- The UAE aims to boost its production capacity to 5 million barrels per day by 2027.
This exit follows a trend where other countries like Qatar and Ecuador have previously left OPEC. Analysts suggest that the departure may encourage other OPEC+ members to reconsider their output limits.