United Arab Emirates to exit OPEC effective May 1

The United Arab Emirates officially announced its intention to withdraw from the Organization of the Petroleum Exporting Countries and the OPEC+ alliance on May 1. UAE Energy Minister Suhail Mohamed al-Mazrouei stated that the move is a policy decision based on an internal review of national energy strategies to meet future global demand. The UAE, which joined the group in 1967, currently holds a production capacity of approximately 4.85 million barrels per day, with plans to expand to 5 million by 2027. This withdrawal effectively ends the country's adherence to OPEC production quotas, allowing for independent output adjustments. The announcement occurs amid regional instability caused by the Iran war and the ongoing closure of the Strait of Hormuz, which has hindered oil exports for two months. While the UAE claims it did not consult other nations, analysts suggest the move may signal growing discord among Gulf states. Minister al-Mazrouei expressed that the market impact will likely be minimal in the short term due to the existing logistical constraints in the Gulf region.