Overview
- The UAE, which announced the decision Tuesday through state media, will withdraw from both OPEC and OPEC+ effective May 1.
- Energy minister Suhail Mohamed al-Mazrouei called it a policy choice after a review of production strategy and said Abu Dhabi did not consult Saudi Arabia.
- Brent crude jumped above $110 a barrel after Tuesday’s news as traders weighed supply risks and future production shifts.
- Analysts say the exit removes one of OPEC’s few swing producers, reducing the group’s spare-capacity tool that works by holding back output to steady prices.
- Officials say the UAE will raise production gradually in line with demand, noting near-term exports are constrained by attacks and disruptions in the Strait of Hormuz, while ADNOC is targeting about 5 million barrels a day of capacity by 2027.