Gulf energy shakeup as UAE quits OPEC

ABU DHABI, April 28: The United Arab Emirates announced on Tuesday its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, with the move set to take effect on May 1, 2026. The Emirates News Agency (WAM) said the decision aligns with the country’s long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production and strengthening its role as a responsible and reliable producer, anticipating the future of global energy markets. The decision follows a comprehensive review of the country’s production policy and current and future capacity, and aligns with national interests and its commitment to meeting market needs amid geopolitical fluctuations and disruptions in the Arabian Gulf and the Strait of Hormuz that affect supply dynamics.

At the same time, global energy demand continues to grow, WAM added. It noted that the stability of the global energy system depends on the availability of flexible, reliable, and affordable supplies, adding that the UAE has invested to efficiently and responsibly meet evolving demand while prioritizing supply stability, cost, and sustainability. The agency said the decision comes after decades of cooperation, noting that the UAE joined OPEC in 1967 and maintained its membership following the country’s establishment in 1971, contributing throughout this period to supporting oil market stability and enhancing dialogue among producing countries

It stressed that the move reflects the evolution of the country’s energy policies, enhancing flexibility in responding to market dynamics while continuing to contribute responsibly to market stability, adding that the UAE remains a reliable oil producer in terms of cost and carbon intensity, supporting global growth and emissions reduction. The UAE will continue to play a responsible role by gradually increasing production in line with demand and market conditions, while working with partners to develop resources in support of economic growth and diversification, WAM said. It emphasized that the decision does not alter the UAE’s commitment to global market stability or its cooperative approach with producers and consumers, but rather enhances its ability to respond to changing market requirements, while expressing appreciation for OPEC and OPEC+ efforts and their contributions over more than five decades. The UAE reaffirmed its commitment to responsible production policies, focusing on market stability while considering global supply and demand, and continuing investment in the energy sector, including oil, gas, renewable energy, and low-carbon solutions to support the energy transition. (KUNA)