UAE exits OPEC in major blow to oil producers' group

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UAE exits OPEC in major blow to oil producers’ group

April 28, 2026

DUBAI,— The United Arab Emirates said on Tuesday it will leave OPEC, a move that could weaken the oil producers group as tensions linked to the Iran war highlight divisions among Gulf states.

The UAE, a long-time member, confirmed it will exit both OPEC and the wider OPEC+ alliance starting May 1, 2026.

Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision followed a review of national energy plans and future production policy.

“This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” Mazrouei said.

He added the UAE did not discuss the move with any other country, including Saudi Arabia, the group’s leading producer.

The announcement limited gains in oil prices on Tuesday.

OPEC has often presented a united position despite internal disagreements over output levels and regional politics.

The departure of the UAE, one of its largest producers, could affect that balance.

The decision comes as Gulf producers face challenges moving oil through the Strait of Hormuz, a key route between Iran and Oman.

About one fifth of global crude oil and liquefied natural gas shipments normally pass through the waterway. Iranian threats and attacks on vessels have disrupted flows.

Mazrouei said the UAE exit is unlikely to have a major effect on the market because shipments are already constrained by the situation in the strait.

OPEC and its partners, including Russia, are known as OPEC+. Before the conflict, the group controlled nearly half of global oil supply. The UAE ranked as the fourth-largest producer in the alliance.

The International Energy Agency said OPEC+ share of global output fell to 44% in March from about 48% in February.

It said the share could decline further in April as production shutdowns increase.

Monica Malik, chief economist at ADCB, said the UAE move could help the country expand its market share when geopolitical conditions improve. She added the exit may support consumers and the wider global economy.

The UAE is a major business and financial center in the region and a key ally of the United States. It has expanded its foreign policy reach across the Middle East and Africa.

In recent years, the UAE strengthened ties with the United States and Israel after establishing relations under the 2020 Abraham Accords.

Officials see the relationship with Israel as important for regional influence and as a link to Washington, especially after attacks during the Iran war.

The UAE decision was seen as a gain for U.S. President Donald Trump, who has criticized OPEC in the past. In a 2018 speech at the United Nations General Assembly, Trump accused the group of raising oil prices unfairly.

He has also linked U.S. security support for Gulf countries to oil pricing, saying OPEC members benefit from American protection while keeping prices high.

The move follows comments by Anwar Gargash, diplomatic adviser to the UAE president, who criticized the response of Arab and Gulf states to recent Iranian attacks. He spoke at the Gulf Influencers Forum on Monday.

Several Gulf leaders met in Saudi Arabia on Tuesday. A Gulf official said the talks aimed to form a response to missile and drone strikes by Iran since the United States and Israel began military action in late February.

The UAE exit comes at a time when global spare oil capacity remains low, keeping markets tight.

Operating outside OPEC will allow the UAE to expand output strategy and make full use of its low-cost and lower-carbon oil production.

Mazrouei said global demand for energy will continue to grow and indicated the UAE move would help meet future needs.

(With files from Reuters)