Yesterday, the UAE announced it would leave OPEC and OPEC+, the sister cartels devoted to managing the global oil supply for maximum profits. The UAE announced:
ABU DHABI, 28th April, 2026 (WAM) — The United Arab Emirates today announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+), effective 1 May 2026. 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.
This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs.
Sovereign Responsibility in a New Energy Age
While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term.
A stable global energy system depends on flexible, reliable, and affordable supply. The UAE has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability.
This decision follows decades of constructive cooperation. The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations.
The decision reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner.
A Reliable and Responsible Energy Partner
The UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction.
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.
With a large and competitive resource base, the UAE will continue working with partners to develop resources, supporting economic growth and diversification.
This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. Rather, it enhances the UAE’s ability to respond to evolving market needs.
We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all. However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets. This is what we will focus on going forward.
A Balanced and Forward-Looking Approach
The UAE reaffirmed that its production policies will be guided by responsibility and market stability, taking into account global supply and demand.
It will continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions, to support resilience and long-term energy system transformation.
The UAE values more than five decades of cooperation with partners and will continue active engagement in support of stable global energy markets.
The announcement comes amidst a supply shock driven by the war between the allied forces of the United States and Israel, and the Islamic Republic of Iran. The war has functionally closed the Persian Gulf, through which much of the world’s seaborne energy flows travel. The IEA notes the disruption to the world’s LNG flows, writing:
The disruption to shipping through the Strait of Hormuz since the start of March has created unprecedented uncertainty, removing close to 20% of global LNG supply from the market and triggering sharp price increases across key importing regions. During a period of intense volatility in March, natural gas prices in Asia and Europe rose to their highest levels since January 2023, contributing to a contraction in naturalgas demand in key LNG importing markets.
Elsewhere, the IEA also emphasized the importance of the Strait of Hormuz in global oil trade, writing:
Around 25% of the world’s seaborne oil trade transited the Strait in 2025, and options for oil flows to bypass the Strait of Hormuz are limited. Only Saudi Arabia and the UAE have operational crude pipelines that could potentially reroute flows to bypass the Strait, with an estimated 3.5 mb/d to 5.5 mb/d of available capacity. Other countries, including Iran, Iraq, Kuwait, Qatar and Bahrain, rely on the Strait to deliver the vast majority of their oil exports.
At the same time as disruption hit the Middle East, the United States is exporting more oil and natural gas than it ever has before.
Other recent changes like the sanctions on Russia’s energy output, and the reopening of Venezuela’s exports to the free world mean the old order of world energy flows is breaking down, and a new one is beginning.
