Particle.news
Download on the App Store

UAE to Quit OPEC and OPEC+ on May 1, Redrawing Gulf Oil Politics

The exit strips the cartel of rare spare capacity, weakening its price leverage.

Overview

  • The UAE, which announced the move Tuesday through state media, said it will leave OPEC and OPEC+ on May 1 to set its own production policy.
  • Energy Minister Suhail al‑Mazrouei called it a sovereign, strategic decision, said Abu Dhabi did not consult other members, and pledged to raise output only as market conditions allow.
  • Oil prices jumped above $110 a barrel after the news, though officials and analysts said near‑term supply effects look limited because export flows through the Strait of Hormuz remain constrained.
  • Analysts warned the departure removes one of OPEC’s few members with meaningful spare capacity and could reduce the group’s ability to steady prices once shipping routes normalize.
  • Reports said the exit follows months of disputes over quotas as the UAE invested to lift capacity toward about 5 million barrels per day, and some estimates suggest OPEC loses roughly 15% of its capacity with Abu Dhabi’s departure.