The United Arab Emirates has announced its withdrawal from OPEC and OPEC+, delivering a major setback to the global oil producers’ alliance. The decision is significant as it comes amid ongoing disruptions in global energy markets linked to regional conflict and supply instability.
According to UAE Energy Minister Suhail Mohamed al-Mazrouei, the move follows a detailed review of the country’s current and future energy policies. He stated that production strategy considerations were central to the decision. The UAE did not consult other member states before making the announcement.
Read more: OPEC+ agrees to boost oil output when Hormuz reopens
Moreover, the exit is expected to weaken OPEC’s unity at a sensitive time. The group has already been under pressure due to disagreements over production quotas and geopolitical tensions. The war-related disruptions in the Strait of Hormuz have further strained global oil flows.
Additionally, the Strait of Hormuz remains a critical chokepoint for global energy supplies, with nearly one-fifth of the world’s crude oil passing through it. Ongoing security concerns have already complicated exports for several Gulf producers, adding uncertainty to global markets.
Read more: OPEC confirms major Saudi oil production hike
Finally, UAE officials indicated that the decision is unlikely to significantly impact global prices in the short term. The move has also drawn international attention, including reactions from global stakeholders who see it as a shift in Gulf energy dynamics and geopolitical alignment.