UAE Announces Exit From OPEC in Bid to prioritize National Interest

by UNI April 28, 2026

By UNI April 28, 2026 0 comments 3 minutes read

Courtesy: opec.org

The UAE, in a startling announcement, said that it will withdraw from OPEC and the wider OPEC alliance, effectively ending nearly six decades of cooperation, in a move carrying potentially dramatic changes for global energy markets at a moment when geopolitical tensions are already at an all-time high.

Abu Dhabi said it would formally exit on Friday, May 1, framing the decision to quit the alliance as part of a broader shift towards prioritizing “national interests” and long-term energy strategy.

In an official statement, carried by state media, Abu Dhabi said that its decision follows a comprehensive review of production policy and capacity expansion plans, with officials arguing that operating independently would give the country greater flexibility to respond to market conditions.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile,” the statement said, adding that while it had made “significant contributions and even greater sacrifices” within the group, the Emirate would now prioritize domestic interest.

The UAE has long been one of OPEC’s most influential members, being the only country in the bloc along with KSA to possess substantial spare production capacity role, and playing a critical role with Riyadh in managing supply.

Its departure will thus actively have adverse effects on the cartel’s ability to maintain cohesion and enforce production discipline, particularly during periods of volatility, raising fresh concerns about its future.

The timing is especially sensitive, as oil markets are already under pressure from the ongoing US-Israel war with Iran, which has led to significant disruptions in flows through the Strait of Hormuz – a critical chokepoint that normally carries about a fifth of global oil supply, and has been blocked by Tehran – leading to mounting prices due to constrained shipments, and uncertainties regarding a diplomatic resolution.

With supply disruptions continuing and no clear path to de-escalation, the combination of geopolitical tension and structural changes within the oil market is keeping pressure firmly on prices.

Brent crude climbed by 3%, rising to around $111.40 a barrel on Tuesday, its highest level in weeks, while US benchmark crude was up by 3.8%, rising to $100 a barrel, with the conflict now stretching into its second month amid fading expectations over any long-term peace being reached, in a highly volatile and uncertain ceasefire.

Abu Dhabi’s exit from OPEC adds another layer of uncertainty to global oil markets, for having long been one of its most flexible producers, the bloc will find it harder to respond quickly to supply shocks, potentially leaving markets far more exposed to price swings.

The wider financial picture has also shifted, as equity markets edged lower with investors weighing the impact of persistent high energy costs and broader geopolitical risk. US stock futures have also slipped, with tech-heavy indices seeing sharper declines in the near future, while bond yields ticked higher.