UAE to Withdraw from OPEC and OPEC+ Effective May 1

The United Arab Emirates (UAE), one of the major oil-producing countries in the Middle East, will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ (an alliance between OPEC and 10 major oil-producing countries including Russia) effective May 1.

OPEC (Organization of the Petroleum Exporting Countries) logo. Photo by Reuters

On April 28 (local time), the UAE government made a surprise announcement of its withdrawal decision through the state-run WAM news agency. The government stated, "This decision reflects the UAE's evolving energy portfolio, which includes our long-term strategy, economic vision, and the acceleration of investment in domestic energy production," adding, "It further solidifies our commitment to playing a responsible, reliable, and forward-looking role in the global energy market."

As a result of this decision, the UAE's oil production is highly likely to increase. OPEC and OPEC+ have restricted crude oil production by setting production quotas for member countries to control international oil prices. This move is interpreted as a rejection of such restrictions and an intention to determine oil output based on the UAE's own independent policy.

The UAE government emphasized, "Even after the withdrawal, the UAE will continue to act responsibly," and added, "We will supply additional oil production to the market in a gradual and prudent manner, in line with market demand and conditions."

The influence of OPEC, led by Saudi Arabia, is steadily declining. Following Qatar's withdrawal in 2019, the decision of another major oil producer, the UAE, to leave further reduces OPEC's sway. According to OPEC data, prior to the war, the UAE's oil production averaged about 3.4 million barrels per day, ranking third among the 12 member countries.

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