US EditionUAE exit weakens OPEC+ power over oil market but group to stay together: Reuters
The move could weaken the cartel’s market control as the UAE seeks more flexibility to raise output, with analysts citing about 12% of OPEC’s total production.
- On April 28, the United Arab Emirates announced it will quit OPEC and the OPEC+ alliance on May 1, ending decades of membership to prioritize national interests and production autonomy.
- Years of dissatisfaction with OPEC's production quotas prompted the exit, as the UAE plans to increase capacity toward 5 million barrels per day by next year, diverging from Saudi-led governance.
- Global oil prices remain largely unchanged following the announcement, as the ongoing Strait of Hormuz crisis dominates current energy markets and restricts regional export volumes.
- The exit affects about 12% of OPEC's total oil output, weakening cartel cohesion and forcing Saudi Arabia to bear the heavier burden of maintaining price stability without the UAE's spare capacity.
- Energy Minister Suhail Al Mazrouei stated the nation wants to be "unconstrained by any groups" while preparing for a future where global energy demand peaks and fossil fuel reliance declines.
78 Articles
78 Articles
The Arab power struggle behind the Emirates' announcement of the global oil club ISTANBUL On the surface, it's about how much oil to pump out of the ground. But the United Arab Emirates' decision...
UAE's OPEC exit deals major blow to oil cartel
The UAE’s decision to quit OPEC did not have an immediate impact on oil prices, but dealt a major blow to the cartel. Abu Dhabi argued the move would allow it to act more independently in its “long-term strategic and economic vision.” After it officially exits on May 1, it will be free to set its…
With the UAE, one of the four "big ones" is leaving the oil cartel, which is not surprising. It could reduce oil prices and remix global energy markets. By Eric Angerer The United Arab Emirates (VAE) is not the first country to leave the OPEC. Indonesia left the OPEC in 2016. Qatar left the OPEC in January 2019, Ecuador at the end of January 2020, Angola in December 2023. Conflicts over production quotas are always the cause. OPEC and Saudi mech…
At any other time, the departure of OPEC from the United Arab Emirates – the Organization of Petroleum Exporting Countries – would have been a major development for the oil market, as it was the fourth largest cartel producer after Saudi Arabia, Iraq and Iran. Although its production capacity is almost five million barrels a day, just behind Saudi Arabia, cartel quotas limited it to about 3.5, generating chronic discomfort in the emirate. Contin…
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