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UAE Withdraws From OPEC
The United Arab Emirates has left OPEC, effective May 1, 2026, after announcing the decision on April 30. The move allows the UAE to set its own production limits, amid tensions over unrecognized capacity growth. Analysts say this weakens the cartel's influence on global oil prices.
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The United Arab Emirates left OPEC on May 1, 2026, following an announcement on April 30 that the move would enable greater independence in its long-term strategic and economic vision, Abu Dhabi stated. The UAE has grown its production capacity by more than any other OPEC member over the past six to seven years, increasing by around one million barrels a day since 2019.
That capacity growth was never fully recognized in its quotas.
According to the Atlantic Council, the UAE is now a free agent after breaking with OPEC. The exit signals a structural shift and fragmentation within OPEC+, according to Seeking Alpha. The UAE was the world's third biggest oil exporter behind Saudi Arabia and Iraq in 2025, per OPEC data. Saudi Arabia produced over nine million barrels per day in the same year.
OPEC was formed in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Its members also include Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, and the Republic of the Congo in addition to the five founders. In 2016, OPEC joined forces with 10 other oil producers including Russia to create the OPEC+ alliance.
In October 1973, Arab oil producers placed an embargo on a group of countries led by the US over their support for Israel during the Yom Kippur war. Arab oil producers coordinated a cut to oil production alongside the embargo. Oil prices more than doubled following the 1973 embargo and production cut. There was fuel rationing following the 1973 oil shock.
A second oil shock occurred in 1979 with the Iranian Revolution. During the coronavirus pandemic, OPEC+ slashed production to boost prices after crude oil prices crashed due to a lack of buyers. After Russia's full-scale invasion of Ukraine in early 2022, OPEC+ pledged to raise production slightly before slashing it later that year.
U.S. President Donald Trump argued that OPEC has used its influence to keep prices higher than they otherwise might have been by limiting supplies. The Strait of Hormuz has been effectively closed for eight weeks. About a fifth of the world's supplies of oil and liquefied natural gas usually travel through the Strait of Hormuz.
