News
UAE exits OPEC and OPEC+ on May 1st
UAE withdraws from OPEC and OPEC+ effective May 1, straining the oil alliance amid rising tensions from the Iran war
UAE withdraws from OPEC and OPEC+ effective May 1st, straining the oil alliance amid rising tensions from the Iran war
– UAE is leaving OPEC and OPEC+ from May 1, impacting the alliance and Saudi Arabia.
– The exit reflects frustrations over Gulf support during the Iran war and aims to enhance national economic interests.
The United Arab Emirates (UAE) announced its withdrawal from OPEC and OPEC+ effective May 1, significantly impacting the oil-producing alliance and its leader, Saudi Arabia. This decision comes at a time of major supply disruptions in global oil markets due to the Iran war.
UAE exits OPEC
The UAE’s exit is a significant defection and may weaken the unity of OPEC amidst ongoing tensions regarding production quotas.
The decision stems from ongoing frustrations with Gulf states over their support during the Iran war, which has seen the UAE targeted more than any other nation in missile strikes.
Anwar Gargash, an advisor to the UAE President, criticized the Gulf Cooperation Council’s political and military responses at a recent forum, expressing disappointment.
The UAE’s state news agency framed the exit as a strategic economic move based on national interests and production capacity.
The shift may benefit U.S. President Donald Trump, who has long accused OPEC of unfair pricing, potentially increasing the UAE’s oil output beyond current quotas.
With growing production capacity, the UAE could utilize its pipeline to Fujairah effectively, bypassing vital shipping channels.
The announcement coincides with an OPEC meeting scheduled in Vienna amidst the ongoing disruptions in oil supply caused by the Iran conflict.
Sheikh Hamdan bin Mohamed Al Maktoum, Doah Qatar September 2025 REUTERS
Industry challenges
Tensions with Saudi Arabia over production quotas have persisted for years, prompting the UAE to assert its growing capacity more forcefully.
An analysis suggested that leaving OPEC could yield the UAE up to $50 billion in additional revenue annually.
The UAE’s exit follows Qatar’s departure from OPEC in 2019, depicting a fracturing alliance facing significant challenges.
Remaining members of OPEC will need to navigate these complexities in their upcoming gathering in Vienna.
