The United Arab Emirates has announced its decision to leave the OPEC and OPEC Plus alliance, marking a major shift in global energy politics. The move is expected to take effect on May 1, 2026, according to official reports from Abu Dhabi.
The decision comes from the United Arab Emirates government, which aims to gain more independence in its oil sales policy. Moreover, officials believe this step will allow the country greater flexibility in managing production and exports.
OPEC was established in 1960 and includes major oil producers such as Saudi Arabia, Iran, Iraq, and Kuwait. Later, OPEC Plus was formed in 2016 with non-OPEC members, including Russia, to coordinate oil production and stabilize global prices.
Also Read: Pakistan, China sign MoUs in water, agriculture and tea sectors
Currently, both organizations control nearly 40 to 50 percent of global oil production. However, reports suggest that tensions over production limits have been rising, especially between the UAE and Saudi Arabia, contributing to this major decision.
Experts say the short-term impact on global oil markets may remain limited due to existing supply disruptions. However, they warn that in the long term, the UAE’s exit from OPEC and OPEC Plus could significantly influence global oil supply and pricing trends.