The United Arab Emirates has declared its departure from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ effective Friday, amid a significant energy crisis caused by the Iran conflict that has revealed discord among Gulf nations.
Having been a member of OPEC since 1967 through Abu Dhabi and later as an independent country from 1971, the UAE’s exit weakens OPEC’s influence on global oil supply and deepens a rift with Saudi Arabia, the de facto leader of OPEC.
This move allows the UAE, one of the largest producers within the group, to potentially raise its output independently once Gulf exports resume, free from OPEC restrictions.
The decision was communicated through the state-run WAM news agency, emphasizing the UAE’s long-term strategic vision and commitment to responsible global energy market participation.
Energy Minister Suhail Mohamed al-Mazrouei indicated that the UAE’s withdrawal was a well-considered decision aligning with their energy strategies, emphasizing that consultation with Saudi Arabia or other countries did not precede the move.
The strained relations between the UAE and Saudi Arabia over regional issues, coupled with threats and attacks in the Gulf region, have influenced the UAE’s decision to depart OPEC.
The UAE’s departure has been speculated for some time, driven by its disagreement with OPEC production quotas deemed inadequate. With global spare capacity at historic lows, the move raises questions about Saudi Arabia’s role as the market’s primary stabilizer.
While the immediate market impact is expected to be minimal due to ongoing supply constraints from the Iran conflict, the long-term implications suggest potential market instability and oversupply once the crisis eases and UAE ramps up production.
Energy expert Heather Exner-Pirot highlighted the evolving geopolitical landscape, where unilateral actions like the UAE’s exit from OPEC signify a shift away from traditional multilateral alliances to a more competitive global environment.