UAE withdraws from OPEC, OPEC+ alliance

The United Arab Emirates (UAE) has formally announced its withdrawal from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, in a move that signals a major shift in global oil politics amid rising tensions in the Middle East.

The decision, set to take effect from May 1, 2026, was disclosed in a statement on Tuesday by the United Arab Emirates Ministry of Energy and Infrastructure following what it described as a comprehensive review of its production strategy and long-term energy outlook.

Announcing the exit, the ministry said the move reflects the country’s evolving priorities and national interest.

The statement read, “The United Arab Emirates today announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+), effective 1 May 2026. This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.”

The UAE, a key producer within the bloc, said the withdrawal aligns with its ambition to respond more flexibly to changing global energy conditions.

“The decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the ministry added.

The announcement comes amid heightened geopolitical tensions in the region, particularly the ongoing Iran conflict, which has disrupted supply routes and increased volatility in global energy markets. Of particular concern is the Strait of Hormuz, a critical shipping channel for global crude exports.

While acknowledging short-term disruptions, the UAE maintained that long-term demand remains strong.

“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the statement noted.

The move ends nearly six decades of UAE participation in OPEC, which it joined in 1967 through Abu Dhabi before the federation was formed in 1971. Over the years, the country played a key role in stabilising oil markets alongside major producers such as Saudi Arabia.

Despite its exit, the UAE expressed appreciation for the organisation.

“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” the ministry stated.

“However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets.”

The UAE stressed that it will continue to engage global markets responsibly, even outside the bloc.

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the statement said.

It also highlighted the country’s position as a low-carbon oil producer and its broader energy transition strategy.

“The UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction,” it added.

The decision is expected to weaken OPEC cohesion and add uncertainty to global oil supply management, particularly as geopolitical risks continue to escalate.

OPEC, founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, has long played a central role in shaping global crude prices. OPEC+—formed in 2016 with Russia and other producers—expanded that influence.

Together, the alliance’s production decisions have significant effects on global energy markets and benchmark prices such as Brent crude.

For oil-dependent economies, including Nigeria, the development could have far-reaching implications for revenues and foreign exchange stability.