UAE Announces Withdrawal from OPEC and OPEC+

Summary: ① The UAE announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the “OPEC+” framework, effective May 1, 2026—a decision that deals a blow to the oil-producing bloc and its leader, Saudi Arabia. ② The UAE Ministry of Energy stated that this decision is based on national interests and reflects its commitment to meeting urgent market demands.

During the European trading session on Tuesday, the UAE abruptly announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the “OPEC+” framework, effective May 1, 2026. At a time of historic energy shocks triggered by the Middle East conflict—shaking the global economy—this decision dealt a heavy blow to the oil producers’ cartel and, in practice, to its de facto leader, Saudi Arabia.

Affected by this news, both WTI and Brent crude oil prices plunged more than $2 in the short term before partially rebounding.

The UAE Energy Ministry said in a statement: "This decision was made after a comprehensive assessment of the UAE's production policy and current and future capacities, based on our national interests, and also reflecting our commitment to effectively meeting the urgent needs of the market."

The statement also said: "Although short-term volatility factors, including supply disruptions in the Arabian Gulf and the Strait of Hormuz, continue to impact the supply landscape, the underlying trend indicates that global energy demand will continue to grow in the medium to long term."

The UAE Minister of Energy and Infrastructure, Al Mazrui, stated that for many years, the UAE has been a member of OPEC and the "OPEC+" mechanism. Looking ahead, global energy demand is expected to continue to grow, and the world needs more energy supply.

Mazrui stated,This decision will enable the UAE to cooperate more flexibly with partners and investors, ensuring the fulfillment of future global market demands for crude oil products, petrochemical products, natural gas, and other energy sectors.

Data showIn February this year, the UAE ranked third in oil production within OPEC, behind Saudi Arabia and Iraq.The country joined OPEC in 1967, seven years after the organization was founded.

As a long-standing OPEC member, the UAE’s sudden exit could trigger internal turmoil and undermine the organization’s cohesion. Although disagreements over geopolitical issues and production quotas have long existed, members have generally strived to project a united external image.

Due to the tense situation in the Strait of Hormuz, OPEC Gulf oil-producing countries have already been facing export blockages, which pose a threat to their economic foundations. The strait is a critical chokepoint for global energy transportation, typically handling about one-fifth of global crude oil and liquefied natural gas shipments. Currently, export difficulties have intensified due to Iranian threats and attacks on ships.

However, the UAE's exit from OPEC is seen as a major victory for US President Trump. Trump had previously criticized the organization for driving up oil prices and "exploiting other countries around the world."

Trump also linked US military support for the Gulf region to the issue of oil prices. He said that while the US provides security protection to OPEC members, these countries "use this to maintain high oil prices and make profits."

This decision was made after the UAE expressed dissatisfaction with other Arab countries. As a regional commercial hub and one of the United States' most important allies, the UAE criticized other Arab countries for not adequately protecting it from multiple Iranian attacks during the war.

Anwar Gargash, the UAE's presidential diplomatic adviser, criticized the response of Arab and Gulf countries to Iranian attacks at a meeting of the Gulf Influence Forum on Monday.

"Gargash stated, 'GCC countries do indeed support each other at the logistical level, but in political and military terms, I believe their positions have historically been the weakest. I anticipated the Arab League's weak stance and was not surprised, but I did not expect the Gulf Cooperation Council to be similarly weak, and this has surprised me.'"

It is reported that,The UAE holds a relatively advantageous geographical position, enabling it to bypass the strait blockade by transporting more than half of its oil exports via pipelines.Exiting OPEC would give it greater flexibility to increase production and investment, while also allowing it to more effectively respond to future uncertainties in the strait.

Jorge Leon, head of geopolitical analysis at consultancy Rystad Energy, said: "The UAE's exit means that one of the core pillars OPEC used to manage the market has been removed. Losing a member with a capacity of 4.8 million barrels per day and intentions to further increase production is equivalent to taking away a truly effective tool from the organization."

According to IEA data,The UAE's withdrawal would deprive OPEC of approximately 13% of its production capacity, thereby weakening the organization's ability to manage the market.

UAE deploys Iron Dome air defense system

Besides leaving OPEC,The UAE recently announced the deployment of Israel's Iron Dome air defense system, which has drawn significant attention from the outside world.

This marks the first time the Iron Dome air defense system has been used in combat outside the United States or Israel. Since the signing of the Abraham Accords in September 2020, military, security, and intelligence cooperation between Israel and the UAE has steadily intensified, reaching a new peak during the recent Iran conflict.

During the war, Iran launched approximately 560 ballistic and cruise missiles, as well as over 2,250 drones, against the United Arab Emirates.

Although the vast majority of missiles and drones were intercepted, some still breached the defense network and struck multiple military and civilian targets within the country.

By contrast, although Israel and Saudi Arabia have cooperated through U.S. intermediaries within a regional air defense framework, there have been no reports indicating that Israel has provided such systems to Saudi Arabia.