The UAE exits OPEC's quota system, allowing it to pump beyond 4.8 million barrels/day. This move grants flexibility for supply deals, notably with India, its largest LNG customer and a significant oil importer.
The UAE has left OAPEC, a group focused on coordinating energy policies between Arab oil-producing nations, days after exiting OPEC Read Full Article at RT.com
Seven OPEC+ countries agreed to raise oil output targets by about 188,000 bpd in June, following the UAE's exit from the cartel on May 1. The increase mirrors last month's hike minus the UAE's 13.5% share. The move is largely symbolic as Strait of Hormuz remains severely disrupted by the US-Israel war with Iran, which handles about one-fifth of global energy trade. Total OPEC+ production fell 7.7 million bpd to 35.06 million bpd in March. Russia has no intention of leaving the group, according to Kremlin spokesman Dmitry Peskov.
The UAE will leave OPEC on May 1, ending years of tension over production limits that capped output despite heavy investment in expanding capacity. Analysts say the move reflects Abu Dhabi's frustration with quotas and a broader shift toward independent national strategies over collective frameworks like OPEC and the GCC. While immediate market impact may be limited, the exit raises questions about OPEC's quota system's viability and could intensify pressure on the cartel.
The UAE will leave OPEC on May 1, ending decades of membership after years of frustration over production quotas that capped output despite heavy investment in expanding capacity. Analysts say the move reflects Abu Dhabi's desire to maximise market share and signals a more independent regional approach, potentially weakening OPEC+ while raising questions about the quota system's relevance.
Oil prices spiked to levels not seen since 2022 as markets react to a persistent blockade of the Strait of Hormuz and potential US military action in Iran. Meanwhile, the UAE's withdrawal from OPEC adds further uncertainty to global energy governance.
India could benefit from the UAE's exit from Opec, officials said, as the country seeks to secure energy supplies following West Asia conflict-related squeezes. With India importing 90% of its 5.8 million barrels daily consumption, the UAE's increased production outside Opec quotas offers a chance for lower prices and reduced freight costs from a geographically closer supplier. India may negotiate a long-term oil trade agreement with the UAE, leveraging their strategic partnership.
UAE announces exit from OPEC, citing national interests and commitment to global market demand. One of world's largest oil producers and exporters, UAE joined the group in 1971 while Abu Dhabi joined in 1967. Analysts say the departure signals serious cohesion problems within the Gulf Cooperation Council.
UAE leaving OPEC will have huge ramifications.
President Trump expressed support for the UAE's decision to exit OPEC on May 1, calling it 'great' for lowering gas and oil prices. The surprise announcement marks a blow to OPEC, which has coordinated oil policy for over six decades. Trump also defended his administration's blockade of Iranian ports as 'genius' and '100% foolproof,' warning Iran must 'cry uncle' before negotiations can resume. The UAE has faced Iranian attacks and Strait of Hormuz restrictions since the US-Israel war with Iran began Feb. 28.
The UAE's announcement of its departure from OPEC after 60 years represents a significant geopolitical fracture within the Gulf, driven by longstanding tensions with Saudi Arabia over oil quotas and regional strategy, as well as frustration with the response to Iranian attacks. The move weakens an already declining cartel that once controlled half the world's oil output but now accounts for only about a quarter.
The UAE's planned departure from OPEC is being described as 'the beginning of the end' for the organisation, occurring amid unprecedented oil market volatility triggered by the US-Israel war with Iran. The UAE, the world's third biggest oil exporter and fourth largest producer at 3.1 million barrels daily, could increase production by around one million barrels per day after leaving. OPEC's share of global crude oil has fallen from 52.5% in 1973 to just 36.7% in 2025, with the Strait of Hormuz effectively closed for eight weeks further complicating exports.
Russia will continue contacts with the UAE on energy issues, Dmitry Peskov noted
The United Arab Emirates has announced its departure from OPEC, citing weeks of Iranian missile and drone strikes disrupting exports through the Strait of Hormuz. Analysts warn this could trigger other members to exit, with Kazakhstan, Nigeria and Venezuela flagged as potential 'flight risks' due to frustration with production quotas. The UAE pumped 2.37 million bpd in March against capacity of 4.3 million bpd, with the country increasingly unwilling to be constrained by quotas designed to support prices.
Energy analysts told TASS that the UAE’s reported decision to leave OPEC and OPEC+ from May 1, 2026 could increase pressure for higher output and, after Middle East conflict conditions ease, raise the risk of an oil price war.
The UAE announced it will withdraw from OPEC and OPEC+ on May 1, 2026, ending a conflict with Saudi Arabia dating to 2020 over oil prices and production quotas. The expert cited a $40 gap between Saudi Arabia's $90 break-even price and the UAE's $50, with OPEC quotas limiting UAE to below its desired 5 mln barrels daily despite $150 bln investment. The timing was also driven by the Hormuz Strait crisis in March, which caused the largest supply failure since the 1970s, with UAE production plummeting 44% to 1.9 mln bpd and 230 tankers blocked.
The UAE's decision to withdraw from OPEC and OPEC+ starting May 1, 2026 could intensify fragmentation trends and increase the risk of sharp price fluctuations, according to an expert at the Higher School of Economics. The departure of one of the largest producers, accounting for more than 12% of the cartel's output, undermines OPEC's ability to coordinate the market and reinforces a fragmentation trend that began with Qatar's exit in 2019.
The UAE's decision to withdraw from OPEC and OPEC+ starting May 1, 2026 could lead to additional oil production growth in the Persian Gulf starting in 2027 and increase downward pressure on prices after the Strait of Hormuz reopens, analysts told TASS. The UAE accounted for 11% of OPEC oil production in 2024 and 7.3% of OPEC+ output.
The United Arab Emirates will exit OPEC on May 1, Energy Minister Suhail Al Mazrouei told CNBC, citing desire for more freedom to reach their goal of 5 million barrels per day of capacity by 2027. The shock decision is reverberating across global energy markets, with analysts warning it could expose fractures in the cartel and prompt other members to exit. Oil prices traded flat while Asian stocks and European futures were muted. Meanwhile, all eyes are on the Federal Reserve for what is likely Chairman Powell's final decision, with Kevin Warsh's nomination advancing in the Senate.
Global market strategist Arnab Das identifies two major structural shifts reshaping markets: Anthropic now holds 32% of enterprise LLM market share versus OpenAI's declining dominance, while the UAE's exit from OPEC weakens Saudi Arabia's oil price control. Both trends will define the investment landscape into the next decade, with AI facing monetization questions and OPEC's ability to act as a reliable global price floor materially weakened.
Asia-Pacific markets traded mixed Wednesday, with Hong Kong's Hang Seng rising 1.2% while South Korea's Kospi fell 0.39% and Australia's S&P/ASX 200 declined 0.28%. The UAE announced it will exit OPEC on May 1, a major blow to the oil cartel. Tech stocks were pressured after the Wall Street Journal reported OpenAI's revenue and user growth fell below internal targets, raising concerns about the company's ability to meet computing costs.
The UAE has announced its departure from OPEC, citing weeks of Iranian missile and drone strikes that disrupted exports through the Strait of Hormuz. The exit exposes fractures in the oil cartel as production quotas increasingly frustrate members with excess capacity. Analysts warn Kazakhstan, Nigeria, and Venezuela could be next to leave, potentially rendering OPEC irrelevant as a coordinating body.
The UAE has announced its departure from OPEC, citing national interests and long-term economic vision. Analyst Afshin Rattansi told RT the move further weakens the oil cartel whose power has eroded since its 1973 embargo heyday. The departure comes amid Strait of Hormuz closures due to the US-Israeli war with Iran, with Rattansi suggesting the UAE may align more closely with BRICS and the Shanghai Cooperation Organization.
The South Korean won rose slightly to 1,475.0 against the dollar Wednesday morning following the UAE's announcement to exit OPEC in May. Analysts expect the UAE's withdrawal and increased production target to potentially weaken oil price increases, though global oil prices continued rising with WTI near $99/barrel and Brent around $111.
