UAE Announces Withdrawal From OPEC & OPEC+ Oil Alliance
In April 2026, the United Arab Emirates (UAE) officially announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, effective May 1, 2026.
In April 2026, the United Arab Emirates (UAE) officially announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, effective May 1, 2026.
- UAE, joined OPEC in 1967, the group’s third-largest producer after Saudi Arabia and Iraq, accounts for around 12% of total output.
Reasons for Withdrawal:
Production Constraints: The UAE’s state-owned Abu Dhabi National Oil Company (ADNOC) has significantly expanded capacity to around 5 million barrels per day. OPEC+ production quotas limited full utilisation of this capacity.
National Interest & Flexibility: The move reflects UAE’s long-term strategy to gain greater flexibility in production decisions and align energy policy with national economic priorities.
Impact : The UAE’s exit may reduce cohesion within OPEC and impact its ability to coordinate production and influence global oil prices.
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