The United Arab Emirates has announced it will exit OPEC and OPEC+ from May 1, marking an end to a nearly six-decade-long stint. The move signals a new chapter for the UAE in global energy markets.

According to the government statement, the decision is based on a comprehensive review of production policies and capacity. It highlights the UAE’s long-term strategic vision and its evolving energy profile, driven by market demands that it believes are currently unmet due to significant supply disruptions.

The geopolitical backdrop, particularly the conflict with Iran, has added pressure as tanker movements through the Strait of Hormuz have been severely restricted. This has led to a reduction in global oil and gas production from Iraq, Saudi Arabia, Kuwait, Qatar, Bahrain, and others, totaling 7.5 million barrels per day in March and 9.1 million in April.

Despite the exit, the UAE remains committed to its energy responsibilities, pledging to increase production gradually but only when market conditions are favourable. The statement also notes that leaving OPEC will allow for greater flexibility in responding to market dynamics, which OPEC's quota system often restricts.