The United Arab Emirates announced Tuesday that it will withdraw from the OPEC and OPEC+ oil cartels effective May 1. The decision, which comes after nearly 60 years of membership since 1967, is aimed at allowing the country to focus on its national interests and respond to evolving market needs. As the third-largest producer in OPEC, the UAE's exit represents the most significant departure from the alliance in recent years.
The Gulf state has long expressed frustration with production quotas that officials believe unfairly limited exports. This strategic realignment follows an extensive review of the country's oil production policy and comes amid increasingly tense relations and a worsening rift with Saudi Arabia, the de facto leader of the cartel. By leaving the group, the UAE intends to ramp up production without constraints and pursue independent economic policies.
The withdrawal occurs during a period of unprecedented volatility and a historic energy shock caused by the war in Iran and Iran's blockade of the Strait of Hormuz. US crude oil surpassed $100 per barrel for the first time since April 10 following the announcement. The exit weakens the 65-year-old alliance's leverage over global oil supplies and prices at a time when Gulf producers are already struggling to ship exports.
US President Donald Trump praised the move, calling it a win. Trump, who has previously accused the organization of inflating oil prices and ripping off the rest of the world, stated that the UAE's decision would help lower energy prices that have soared in the wake of the conflict in Iran.