UAE Announces Exit from OPEC and OPEC+

• 29 Apr 2026

On 28th April 2026, the United Arab Emirates announced it will leave Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ effective May 1, 2026.

Key Points

• Reason for Exit:
  • Long-standing disagreement over production quotas.
  • UAE sought greater flexibility after expanding oil production capacity.
• Strategic Motivation:
  • Aligns with UAE’s long-term economic and strategic vision.
  • Aims to maximise export potential and market responsiveness.
• About OPEC:
  • Intergovernmental oil cartel coordinating production.
  • Seeks to stabilise oil markets and influence prices.
• About OPEC+:
  • Expanded alliance including Russia and other producers since 2016.
  • Controls roughly 40-45% of global oil output.
• How OPEC Influences Prices:
  • Uses production quotas to manage supply.
  • Cuts output to raise prices; increases output to cool prices.
• UAE’s Concerns:
  • Felt quotas limited return on major production investments.
  • Growing divergence from collective restrictions.
• Potential Global Impact:
  • Could weaken OPEC cohesion.
  • May increase oil market volatility.
  • Could alter global supply dynamics.
• Challenges to OPEC:
  • US shale production.
  • Internal quota disputes.
  • Renewable energy transition.