UAE Quits OPEC after Nearly 6 Decades, Signals New Energy Strategy

Moneylife Digital Team 28 April 2026

Consumer Interest

The United Arab Emirates (UAE) has announced that it will exit the Organisation of the Petroleum Exporting Countries (OPEC) and its broader OPEC+ alliance from 1st May, marking a significant shift in global energy dynamics. While stepping away from OPEC’s coordinated production framework, UAE emphasised that it will continue to act in a measured manner. It says future production increases would be gradual and aligned with market demand, underscoring its intent to avoid destabilising global supply.

The decision, announced through the state-run WAM news agency, ends the UAE’s decades-long association with the oil producers’ group which dates back to 1967 when Abu Dhabi first joined before the formation of the UAE in 1971.

In its statement, UAE says the move reflects its evolving energy strategy and long-term economic priorities, including increased investment in domestic energy production and a desire for greater flexibility in responding to global market conditions.

“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile,” the statement says, adding that the country remains committed to playing a responsible and reliable role in global energy markets.

The exit comes amid heightened volatility in global oil markets, with supply disruptions in key regions such as the Arabian Gulf and the Strait of Hormuz influencing prices and trade flows. Despite these challenges, UAE pointed to sustained long-term growth in global energy demand as a key factor shaping its policy shift.

The country also highlighted its position as a competitive, lower-carbon oil producer, indicating that its resources will continue to play an important role in supporting global economic growth and energy transition efforts.

Officials say the decision followed a comprehensive review of the country’s production policies and capacity outlook, with a focus on aligning national interests with evolving global energy trends. The move is expected to give UAE greater autonomy in setting output levels and managing its resource base.

Despite the exit, UAE reiterated its commitment to cooperation with producers and consumers to maintain market stability. It also expressed appreciation for its long-standing association with OPEC and contributions made during its membership.

The country says it will continue to invest across the energy value chain, including oil, gas, renewables and low-carbon technologies, as part of a broader strategy aimed at balancing economic growth with sustainability goals.

The decision is likely to be closely watched by global markets, as it signals a potential shift in how major oil producers approach supply coordination in an increasingly complex and evolving energy landscape.

Comments

User

muscat2011.job

3 weeks ago

They want to buy food from India at cheap prices, but oil they will sell at surge prices. If food selling countries make an OPEC sort group and fix prices for rice, wheat, veggies and fruits it will do good for India.

muralithedebonair

3 weeks ago

The cost of producing one barrel (200 litres) of oil - including all expenses & overhead costs in producing that barrel - is about a tenth of the market price. So you see how greedy people the world over are for money !