UAE 5/1 Leaves OPEC and OPEC+: 59 Years of Membership Ends, Oil Markets Shift

According to reports from OilPrice and AP on April 28, the UAE national news agency WAM announced that it will withdraw from the OPEC (Organization of the Petroleum Exporting Countries) and OPEC+ mechanisms on May 1, 2026. The UAE joined OPEC in 1967, four years earlier than the country’s founding (1971), and is one of OPEC’s founding members. After the withdrawal takes effect, OPEC will lose its third-largest oil-producing country (after Saudi Arabia and Iraq).

Withdrawal mechanism: Effective May 1, and the official statement emphasizes national strategy

In the statement, the UAE said: “This decision reflects the UAE’s long-term strategy and economic vision, as well as an ever-evolving energy structure, including accelerating domestic energy production investment, and strengthening our commitment to playing a responsible, reliable, forward-looking role in the global energy market.”

Another official explanation released via WAM also noted: “Now is the time to focus our efforts in the directions required by our national interests, and in our commitments to investors, clients, partners, and the global energy market.”

The scope of the withdrawal covers both OPEC itself and the broader OPEC+ (including coordination mechanisms involving Russia and other non-OPEC oil-producing countries).

Withdrawal backdrop: Quota disputes and pressure from the Iran war

For years, the UAE and Saudi Arabia have differed over production quotas. The UAE’s current OPEC+ quota is about 3 million barrels per day, but its actual production capacity has already exceeded 4 million barrels per day. Its national oil company, ADNOC, has set a production capacity target of 5 million barrels per day for 2027. The quota restrictions prevent the UAE from fully tapping its existing and planned production capacity.

Another direct backdrop is the Iran war: fighting has entered its ninth week, and in the past few weeks the UAE has been targeted by missile and drone attacks launched by Iran. The Strait of Hormuz is currently effectively under blockade, and according to OilPrice estimates, the combined capacity forced to shut down for Gulf oil-producing countries is about 9.1 million barrels per day.

At the end of 2022, the UAE’s energy minister had said: “No matter how we defend oil, it is indeed heading toward decline.” This line is often cited as a signal that the UAE’s energy strategy is shifting—continuing the same thread as its 2050 net-zero commitment and its $100 billion clean energy partnership with the United States.

Oil market reaction: Brent breaks 110, and WTI rises above 100

After the news was released, international oil prices moved higher in tandem:

Target Latest price Change Brent Crude Oil 110+ USD/barrel Breaks through 110 USD WTI Crude Oil 100.20 USD +3.83 USD (+3.97%)

The political cost to OPEC of losing its third-largest oil-producing country representative organization will rise, especially while the Iran war is still underway and Gulf production capacity is shutting down on a large scale. Points to watch next include whether OPEC convenes an emergency ministerial-level meeting, how Saudi Arabia and Russia respond, and whether the UAE will immediately ease production limits after May 1.

This article, UAE exits OPEC and OPEC+ on 5/1: 59 years of membership ends, and the oil market changes, appeared first on ABMedia.