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UAE to Withdraw from OPEC Effective May 1
The United Arab Emirates has decided to leave the OPEC oil cartel after nearly 60 years, citing its long-term strategic and economic vision. President Donald Trump praised the decision, stating it could help lower energy prices amid regional tensions. The exit is seen as a blow to OPEC's influence, amid growing rivalry with Saudi Arabia and conflicts involving Iran.
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The United Arab Emirates announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), effective May 1, after nearly 60 years of membership. According to a statement from the UAE's energy ministry, the decision reflects the country's evolving energy profile and investments in domestic energy production.
The UAE was the third-largest oil producer in OPEC in February, behind Saudi Arabia and Iraq, with production figures reported by OPEC's monthly oil market report.
This announcement occurs amid regional conflicts, including missile and drone attacks on the UAE by Iran, another OPEC member. Iran's actions have included attempts to close the Strait of Hormuz, which have constrained the UAE's oil exports. The UAE's energy ministry statement did not reference the Gulf conflict, focusing instead on national interests and expressing appreciation for past cooperation with OPEC.
President Donald Trump commented on the UAE's decision during a White House event on May 3, 2026. According to a CNBC report, Trump said, "I think it's great. " Trump also linked the exit to potential reductions in energy prices, noting OPEC's challenges since the US-Iran conflict began in February, including a blockade of Iranian ports.
The UAE's withdrawal follows a series of exits from OPEC in recent years. The New York Times reported that this loss further weakens OPEC's influence on the global oil market. BBC News described it as the most significant exit in recent years, potentially affecting global energy markets.
Analysts cited in various reports, including unnamed sources in the Atlantic Council dispatch, noted that the decision could test OPEC's future cohesion and its control over production quotas.
Johns Hopkins economist Steve Hanke, in a Fortune article, described the exit as the UAE choosing to "take the money and run," emphasizing economic motivations following reviews of production policy and capacity. The New York Post reported that the decision could drive down gasoline prices by weakening the cartel's control.
