US EditionUAE Quits Opec in Shock Move, Rattles Global Oil Markets and Challenges Saudi Dominance
Unverified reports of a UAE exit from OPEC rattled traders as analysts warned that even rumors can move Brent crude within hours.
- On Tuesday, April 28, the United Arab Emirates announced it will leave OPEC effective May 1, with Energy Minister Suhail Mohamed al‑Mazrouei stating the move aims to align production with rising global energy demand.
- Rising friction between Abu Dhabi and Riyadh over production quotas and regional strategy drove the decision, as the UAE seeks to increase capacity to 5 million barrels per day by 2027 under OPEC's constraints.
- Recent Iranian attacks damaged major UAE facilities, accelerating the exit; Steve H. Hanke, professor of applied economics at Johns Hopkins University, states the war makes "take the money and run" the UAE's priority.
- Global markets reacted with volatility as analysts warn the exit weakens the Saudi Arabia-led OPEC+ alliance and threatens the cartel's control over crude prices, given the UAE's approximately 12% output share.
- This shift positions the UAE to pursue its own strategic energy vision as oil consumption is expected to peak in coming decades, accelerating investments in domestic production and sustainable technologies.
48 Articles
48 Articles
What does the UAE walking out of OPEC mean for Russia’s war on Ukraine?
The United Arab Emirates leaves OPEC on 1 May. For Ukraine, the impact runs through one number: Russia’s oil revenue, which still pays for the war. Russian Finance Minister Anton Siluanov publicly admitted on Wednesday that the exit will push global prices down. Less oil money. Less war money. Even announcement effects move oil prices and downstream macroeconomic conditions. The scale is real. UAE could add 1.6 million barrels per day to global…
UAE exit from OPEC just latest blow to cartel, whose global might was already undermined by US oil
The United Arab Emirates' decision to leave the Organization of the Petroleum Exporting Countries (OPEC) is part of a decade-long exodus from the cartel as it loses its control over global energy prices.
Goldman says UAE’s exit from OPEC raises medium-term oil supply upside risk
April 29 (Reuters) – Goldman Sachs on Wednesday said the United Arab Emirates exit from OPEC poses a greater upside risk to oil supply over the medium term than in the short term. The UAE said on Tuesday it would leave OPEC and the wider OPEC+ alliance from May 1, a move that weakens the producer group’s control over global oil supplies and could eventually give Abu Dhabi more room to raise output once Gulf export routes reopen. • The bank…
Coverage Details
Bias Distribution
- 40% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
