The United Arab Emirates (UAE) declared its departure from the OPEC and OPEC+ alliances, signaling a significant blow to the coalition of oil-exporting nations led by Saudi Arabia. This decision by the UAE is based on its strategic and economic vision, aiming to enhance its energy profile with more flexibility. Energy Minister Suhail Al Mazrouei emphasized that this move allows the UAE to operate without the obligations tied to these groups.
In a public statement, Mazrouei highlighted that the UAE’s exit from OPEC is in line with policy-driven developments in the sector and aligns with long-term market fundamentals. Expressing gratitude for the constructive cooperation with OPEC and its members over the years, the UAE reaffirmed its dedication to ensuring energy security through the supply of reliable, responsible, and low-emission resources to support global market stability.
The departure of the UAE is anticipated to weaken the oil cartel, particularly as Persian Gulf countries face challenges in exports due to Iran’s closure of the Strait of Hormuz. Accounting for about 15% of OPEC’s oil exports, the UAE’s exit is viewed as a significant development. This move is seen as advantageous for US President Donald Trump, who has criticized OPEC for raising oil prices to the detriment of other nations.
According to recent OPEC data, the UAE’s annual oil production stands at 2.9 million barrels, while Saudi Arabia, the de facto leader of OPEC, produces nine million barrels annually. Established in 1960, OPEC was created by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela to coordinate production and stabilize prices for increased revenue. Over the years, the cartel’s membership has evolved, with the UAE becoming the latest to exit, reducing the active members to 11 effective May 1.
