UAE Exits OPEC and OPEC+, Signaling Major Shift in Oil Policy

The UAE announces exit from OPEC+, a move that could reshape oil markets and deepen divisions among major producers.

Reuters reported that the United Arab Emirates said on Tuesday it will withdraw from the OPEC+, a move that could have significant implications for global oil markets.

Officials said the decision reflects a strategic shift in energy policy, with Energy Minister Suhail Mohamed Al Mazrouei describing it as a “sovereign and political choice” aligned with the country’s future production plans.

Analysts warn the exit of a long-standing member could weaken cohesion within Organization of the Petroleum Exporting Countries and intensify disputes over production quotas and market strategy.

OPEC+—which includes OPEC members and major producers such as Russia—has played a central role in coordinating oil output to stabilize prices and manage global supply.

The move comes at a time of heightened volatility in energy markets, driven in part by tensions involving Iran and concerns over supply routes such as the Strait of Hormuz.

Despite these risks, UAE officials said the decision is unlikely to cause immediate disruption to oil markets, though longer-term impacts remain uncertain.

OPEC+ has been a key mechanism for managing oil supply since its formation, particularly during periods of economic shocks and geopolitical instability affecting global demand.

The UAE has at times pushed for higher production baselines within the group, reflecting its growing capacity and ambition to expand its share in global energy markets.

The Strait of Hormuz remains one of the world’s most critical water way chokepoints, with a significant portion of global crude exports passing through it daily, making any regional tension a major market concern.

The decision also comes amid broader geopolitical friction, with U.S. President Donald Trump previously criticizing OPEC over high oil prices and urging increased production to ease pressure on the global economy.

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