Oil Cartel Shaken as UAE Announces Surprise Exit From OPEC [WATCH]

The United Arab Emirates announced it will withdraw from the Organization of the Petroleum Exporting Countries and the OPEC+ alliance, with the decision set to take effect May 1, 2026, according to a statement released by the Emirates News Agency on Tuesday.

The development comes days after the UAE publicly signaled liquidity concerns by requesting swap lines from the Federal Reserve to ease pressure on the country’s banking system.

News of the planned exit crossed financial wires early Tuesday morning.

In its statement, the UAE said the move aligns with its long-term strategic and economic direction and reflects changes in its energy sector priorities.

Here’s What They’re Not Telling You About Your Retirement

“Abu Dhabi, April 28 / WAM / The United Arab Emirates announced today its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, effective May 1, 2026,” the statement read.

“This decision is in line with the UAE’s long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production, and reinforces its commitment to its role as a responsible and reliable producer that looks to the future of global energy markets.”

The UAE is among the largest oil producers in OPEC, producing approximately 4.05 million barrels per day, and has been working toward increasing capacity to around 5 million barrels per day by 2027.

Its departure is expected to have implications for the remaining member countries, which include Saudi Arabia, Iran, Iraq, Kuwait, Venezuela, Nigeria, Libya, Algeria, Congo, Equatorial Guinea, and Gabon.

This Could Be the Most Important Video Gun Owners Watch All Year

The statement said the decision followed a review of production policies and future capacity considerations.

“This decision came after a thorough review of the UAE’s production policy and its current and future capacity, and in view of what the national interest requires and the state’s commitment to contribute effectively to meeting the urgent needs of the market, while geopolitical fluctuations continue in the near term through the disturbances in the Arabian Gulf and the Strait of Hormuz, which affect supply dynamics, as the basic trends indicate continued growth in global energy demand in the medium and long term.”

The UAE also emphasized its continued role in global energy markets after its departure from the group.

“The stability of the global energy system depends on the availability of flexible, reliable and affordable supplies, and the UAE has invested to meet the changing demands efficiently and responsibly, prioritizing supply stability, cost, and sustainability.”

WATCH:

The country joined OPEC in 1967 through the Emirate of Abu Dhabi and remained a member after the formation of the United Arab Emirates in 1971.

The statement described decades of cooperation within the organization.

“This decision comes after decades of constructive cooperation, as the UAE joined OPEC in 1967 through the Emirate of Abu Dhabi, and its membership continued after the establishment of the United Arab Emirates in 1971.

During this period, the country played an active role in supporting the stability of the global oil market and promoting dialogue between producing countries.”

The UAE said the move reflects a shift toward increased flexibility in responding to market conditions.

“The decision affirms the evolution of sector policies to enhance flexibility in responding to market dynamics, while continuing to contribute to market stability in a thoughtful and responsible manner.”

Officials also said the country will continue to expand production in line with demand after leaving the group.

“After leaving OPEC, the UAE will continue its responsible role by gradually and thoughtfully increasing production, in line with demand and market conditions.”

The statement noted that the country intends to continue investing across the energy sector.

“The state will continue to invest across the energy sector value chain, including oil and gas, renewable energy and low-carbon solutions, to support resilience and long-term transformation of the energy system.”

Financial markets reacted to the announcement, with West Texas Intermediate crude futures initially declining before recovering later in the session.

Analysts weighed in on the implications of the move.

UBS analyst Matthew Cowley said in a note to clients, “This would weaken OPEC’s ability to defend price floors, especially during economic slowdowns.”

WATCH:

OPEC was founded in Baghdad in September 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, with the goal of giving oil-producing nations greater control over production and pricing.

The UAE’s exit marks a significant development for the organization, as one of its largest producers moves to operate outside the group’s coordinated framework while continuing to position itself as a major player in global energy markets.

Warning: Account balances and purchasing power no longer tell the same story. Know in 2 minutes if your retirement is working for you.