The United Arab Emirates announced today that it is leaving the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, dealing a serious blow to coordination between the world's leading oil producers at a time of severe turmoil in energy markets, world agencies reported, quoted by BTA.
The decision was announced against the backdrop of a deepening energy crisis caused by the conflict in Iran and tensions around the Strait of Hormuz - a strategic route through which about a fifth of the world's crude oil and liquefied natural gas supplies usually pass.
UAE Energy Minister Suhail Mohammed al-Mazrouei said the decision was made after a "careful review of current and future policies related to production levels," stressing that the country had not consulted other countries, including Saudi Arabia.
He said the UAE's withdrawal from the two organizations uniting crude oil producers would not have a significant impact on the market in the short term due to the current situation in the region.
The withdrawal of the UAE, a long-time member of the oil cartel, highlights the accumulated tensions within the organization, including over production quotas, which Abu Dhabi says limit opportunities to increase output and exports.
The decision is also being viewed in a broader geopolitical context. US President Donald Trump has repeatedly criticized OPEC for maintaining high oil prices, linking US military support for the Gulf countries to their policy in the field of production, Reuters recalls.
Tensions in the region are also being increased by difficulties in shipping through the Strait of Hormuz due to Iranian threats and attacks on commercial vessels.
The diplomatic advisor to the UAE president, Anwar Gargash, criticized the reaction of the Gulf states and the Gulf Cooperation Council, describing it as the “weakest in history” in terms of political and military coordination.
The news caused initial price volatility in the markets. Brent crude oil prices briefly fell after the announcement before recovering to trade around $111 a barrel, up 2.65 percent on the day.
Analysts say the UAE’s exit could structurally weaken OPEC’s role, leaving Saudi Arabia as a major producer with spare capacity to balance the market. That could lead to greater price volatility, especially as production outside the cartel grows, including in the United States.
Jorge Leon, head of geopolitical analysis at Rystad Energy and a former OPEC official, told the Financial Times that the cartel would be “structurally weaker” without the UAE, as Saudi Arabia remains the only member with significant spare production capacity.
After the UAE's exit from OPEC, eleven countries remain in the organization. These include Algeria, Equatorial Guinea, Gabon, Iraq, Iran, the Republic of Congo, Kuwait, Libya, Nigeria, Saudi Arabia and Venezuela. Indonesia left OPEC in 2016, Qatar in 2019 and Ecuador in 2020. The last country to leave the organization was Angola in 2023.
Nevertheless, the expanded OPEC+ alliance remains a significant factor, accounting for approximately 40 percent of global oil production.
The UAE's decision also reflects the country's long-term ambitions to increase its production capacity through investment in the extractive sector and to take a more independent position in the global energy market.