UAE says it will quit OPEC, OPEC+ on May 1

The United Arab Emirates is set to withdraw from international oil producing group OPEC and the broader OPEC+ alliance effective on May 1, the official Emirates News Agency, or WAM, confirmed on Tuesday.

Experts say the landmark move will deliver a major blow to the oil producer coalition at a critical time, as the ongoing conflict between the United States and Iran has triggered a historic energy shock, with a major impact on global economic stability.

The UAE boasts long-standing OPEC membership as it first joined through Abu Dhabi in 1967, before the seven-emirate country formally established the modern nation in 1971.

Gulf-based OPEC producers have already faced mounting export disruptions at the Strait of Hormuz, the vital maritime chokepoint between Iran and Oman, through which one-fifth of global crude oil and liquid natural gas flows, since the outbreak of the US-Iran conflict in late February.

"This decision reflects the UAE's long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets," the WAM report said.

"Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions," it added.

Suhail Mohamed Al Mazrouei, the UAE's minister of energy, said in a social media post that the decision marked a policy-driven evolution anchored in long-term market fundamentals.

"We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible, lower-carbon supply while supporting stable global markets," he said.

In the past, US President Donald Trump has accused OPEC of "ripping off the rest of the world" by inflating oil prices, linking US military support for the Gulf with oil prices, saying that while the US defends OPEC members, they "exploit this by imposing high oil prices".

Jorge Leon, senior vice-president and head of geopolitical analysis at Rystad Energy, told Reuters that the UAE's withdrawal represents a pivotal shift for OPEC. Alongside Saudi Arabia, the UAE is one of the cartel's only members with substantial spare production capacity — the core leverage that underpins OPEC's ability to influence global oil markets, he said.

"While near-term effects may be muted given ongoing supply disruptions in the Strait of Hormuz, the longer-term implication is a structurally weaker OPEC," he said. "Outside the group, the UAE would have both the incentive and the ability to ramp up output, raising questions over Saudi Arabia's enduring role as the market's key stabilizer. The shift also points to heightened volatility in global oil markets, as OPEC's capacity to balance supply and demand continues to erode."