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UAE exit weakens OPEC+ power over oil market but group to stay together: Reuters
The move removes one of OPEC’s largest producers and could increase oil price volatility, analysts said.
- On Tuesday, the United Arab Emirates announced its withdrawal from OPEC and OPEC+ effective May 1, 2026, reflecting the country's long-term strategic and economic vision.
- Seeking freedom from OPEC constraints, the UAE aims to increase production capacity to 5 million barrels per day by 2027; state-owned Abu Dhabi National Oil Company plans aggressive domestic investment.
- Oil market researcher Rory Johnston called the departure a "massive crack, arguably the biggest in the producer group's storied history," warning that Saudi Arabia now faces a weaker hand managing the market.
- Due to the ongoing closure of the Strait of Hormuz, immediate market impact remains minimal; however, analyst Jorge León warned of "significant risk of higher oil price volatility" once shipping resumes.
- ING commodity strategists note the exit may benefit importers and consumers while potentially triggering further defections; President Donald Trump has previously accused OPEC of "ripping off the rest of the world.
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Analysis by Hanna Ziady, CNN The Organization of Petroleum Exporting Countries, OPEC, is about to lose one of its most important members. The exit from the United Arab Emirates will strike a blow at the group that could put its ability to influence the world oil market at risk. UAE is the third largest crude oil producer in OPEC, after Saudi Arabia and Iraq. Its departure from the group will allow it to pump more oil, which could help lower oil …
·Idaho Falls, United States
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·Amsterdam, Netherlands (Kingdom of the)
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If the once powerful oil cartel were to disintegrate after the UAE's departure, one would be particularly pleased: Donald Trump.
Coverage Details
Total News Sources24
Leaning Left2Leaning Right3Center9Last UpdatedBias Distribution64% Center
Bias Distribution
- 64% of the sources are Center
64% Center
14%
C 64%
R 22%
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