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The United Arab Emirates said Tuesday it is pulling out of OPEC and OPEC+, a move that could reshape production strategy as global oil markets face supply constraints and rising demand expectations.
The departure frees the UAE from group production quotas, giving it greater flexibility to increase output and expand its role across crude, petrochemicals and natural gas markets. Officials signaled the shift is aimed at positioning the country for long-term global energy demand growth.
UAE Energy Minister Suhail al-Mazrouei told Reuters the decision followed a “careful look” at national energy strategy and was a “sovereign national decision” grounded in long-term economic priorities. He said operating outside the group will allow the UAE to better meet future global demand.
“Being a country with no obligation under the group will give us flexibility,” al-Mazrouei said, adding the move comes at a time when global consumers require stable supply and strategic reserves are being drawn down.
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The timing also reflects ongoing constraints on global oil flows, particularly through the Strait of Hormuz — a key chokepoint between Iran and Oman that typically carries about one-fifth of the world’s oil and liquefied natural gas shipments. Disruptions and security threats in the region have tightened supply routes and added volatility to energy markets.
Al-Mazrouei said the UAE did not directly consult with other producers, including Saudi Arabia, before making the decision. He added the country believes the move can be made without significantly disrupting markets given existing supply constraints.
The exit raises questions about coordination among OPEC+ producers, which have historically relied on production limits to manage global supply and influence prices. The UAE has been a longtime member of the group.
UAE officials have expressed frustration with regional allies over their response to recent security threats. Anwar Gargash, diplomatic adviser to the UAE president, said Gulf Cooperation Council countries provided logistical support but fell short politically and militarily.
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“The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically,” Gargash said at a forum on Monday. “I expect this weak stance from the Arab League and I am not surprised by it, but I haven’t expected it from the (Gulf) Cooperation Council and I am surprised by it.”
The UAE’s departure will be effective May 1.
Reuters contributed to this report.
