Daijiworld Media Network - New Delhi

New Delhi, Apr 28: The United Arab Emirates has announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, marking a significant shift in global energy dynamics.

The move, which will take effect from May 1, is being seen as a major setback for the oil-producing bloc led by Saudi Arabia. UAE Energy Minister Suhail Al Mazrouei said the decision aligns with the country’s long-term economic strategy and evolving energy priorities, offering greater flexibility in production and policy decisions.

The UAE stated that its exit follows a comprehensive review of its production capacity and national interests, adding that it remains committed to ensuring stable and responsible energy supplies to global markets.

Why the Exit Matters

The UAE’s departure is widely viewed as a serious blow to OPEC’s unity and influence, especially at a time when global oil markets are already under pressure due to geopolitical tensions and supply disruptions linked to Iran and the closure of the Strait of Hormuz.

Analysts say the decision could weaken the cartel’s ability to control oil output and stabilise prices, while potentially increasing market volatility in the long run.

Strategic Shift and Global Impact

The UAE, one of OPEC’s key producers, is expected to gain more freedom to increase oil production outside the group’s quota system. This could benefit large energy-consuming nations and reshape global supply dynamics.

The development is also being seen as a geopolitical gain for Donald Trump, who has repeatedly criticised OPEC for inflating oil prices.

Background on OPEC

Founded in 1960 by countries including Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, OPEC was created to coordinate oil production and influence global prices. Over the years, its membership has fluctuated, with several countries exiting in the past decade.

With the UAE’s exit, the organisation faces renewed questions about its cohesion and future relevance in an increasingly volatile and competitive global energy landscape.