The United Arab Emirates announced its official withdrawal from OPEC and the OPEC+ alliance on April 29, 2026. This decision ends a membership spanning nearly 60 years and takes effect on May 1.
The UAE cited a long-term strategic vision to expand domestic production capacity as the primary driver. Current cartel output quotas have historically constrained these expansion goals.
Brent crude futures surged over 3.5% to exceed $115 per barrel following the announcement. Markets remain strained by the ongoing conflict in Iran and uncertainty over future supply coordination.
The exit represents a major blow to Saudi Arabia’s leadership and control over global oil markets. This move diminishes the cartel's influence during a period of heightened geopolitical tension.
A blockade of the Strait of Hormuz currently limits the UAE’s ability to increase immediate exports. However, the departure signals a long-term shift toward a more fragmented and competitive global energy market.