The United Arab Emirates has confirmed it will withdraw from OPEC and the wider OPEC+ arrangement from May 1, 2026, citing a need for greater flexibility in managing its oil production in line with national priorities.
In a statement released by the Ministry of Energy and Infrastructure, the government said the decision followed a review of its current and future production capacity, long-term economic direction, and evolving energy strategy.
Officials noted that while the country remains committed to supplying global markets responsibly, it wants the freedom to respond more swiftly to changing demand and market realities outside the group’s quota system.
The move ends nearly 60 years of UAE participation in OPEC, which began in 1967 through Abu Dhabi, years before the federation was formed. Over the decades, the UAE has been regarded as one of the bloc’s key producers, often aligning with major members such as Saudi Arabia in efforts to stabilise oil prices.
The announcement comes at a tense period for energy markets, with rising geopolitical risks across the Middle East, particularly tensions involving Iran. Concerns have also grown around the safety of shipments passing through the Strait of Hormuz, a critical route for global crude exports.
UAE authorities acknowledged short-term market volatility but said long-term global energy demand remains strong. They added that the country would continue increasing output in a gradual and measured way, guided by market conditions.
Analysts say the departure could test cohesion within OPEC and OPEC+, especially as the alliance expanded in 2016 to include non-OPEC producers led by Russia has played a central role in coordinating supply to support prices.
The UAE also highlighted its position as a producer of cost-competitive, lower-carbon crude and said it would keep investing across oil, gas, renewables, and low-carbon technologies as part of a broader diversification plan.
For oil-dependent countries such as Nigeria, the development presents mixed implications: potential gains from firmer crude prices but higher costs for imported refined fuels.
Attention is now turning to how OPEC and its partners will respond to the UAE’s exit and whether the alliance can maintain unity amid mounting geopolitical and market pressures.
