UAE announces exit from OPEC, shakes Global Energy market

The United Arab Emirates has sent shockwaves through the global energy sector with its announcement of a formal withdrawal from the Organisation of Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance.

In a statement released on Tuesday, the UAE Ministry of Energy confirmed that the country will officially exit the bloc on May 1. The decision follows an internal review of its long-term production strategy and capacity expansion goals.

According to ministry officials, the move is driven by national interest and the need to respond more flexibly to global energy demands, which they argue are constrained by the current production quota system.

The development comes amid heightened geopolitical tensions, following the outbreak of conflict involving the United States, Israel, and Iran. Rising instability around the Strait of Hormuz has already disrupted global oil flows and contributed to volatility in energy markets.

As one of the major producers within the group, the UAE was previously producing about 3.5 million barrels of crude oil per day. Its exit is expected to give the country greater control over its production decisions at a time when global supply chains are under pressure and energy prices remain highly unstable.