The United Arab Emirates will withdraw from OPEC and the OPEC+ alliance effective May 1. State-run news agency WAM announced the departure on Tuesday. This move deals a significant blow to the Saudi-led oil cartel.
Long-standing disagreements over production quotas drove the decision. The UAE maintains that these limits constrained its national output capacity. Growing friction with neighboring Saudi Arabia further motivated the exit.
The departure of a major producer threatens OPEC’s strategy for managing global oil markets. This shift occurs amid ongoing supply shocks from the conflict with Iran.
The UAE now gains the flexibility to increase oil output without group constraints. Analysts suggest the move removes a key source of spare capacity from OPEC's control. This loss of market stabilization power may lead to greater global price volatility.