UAE Ends 59-Year OPEC Membership, Reshaping Global Oil Landscape
The United Arab Emirates (UAE) officially ended its 59-year membership with the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ on May 1, 2026. This significant move is seen by experts as a sign of closer alignment with U.S. interests and could have a profound impact on global oil markets.
Prior to the U.S.-Iran conflict, the UAE was producing approximately 3.4 million barrels per day. The country cited its departure from OPEC as a need to focus on “national interests” and to pursue independent production policies. The UAE has invested a staggering $150 billion to expand its oil capacity from 4 million barrels per day to a target of 5 million barrels per day by 2027. However, OPEC production quotas had limited output to just 3.5 million barrels daily.
Energy analysts suggest that the timing of the UAE’s exit, while unexpected, reflects long-standing tensions between the UAE and Saudi Arabia. These tensions revolve around production quotas and differing regional political strategies. With the UAE’s exit, it is no longer part of OPEC’s coordinated supply agreements. This could potentially allow the UAE to flood markets with an additional 1.6 million barrels per day once the Strait of Hormuz fully reopens.
This departure marks the biggest schism in OPEC since its inception in 1960 and could potentially weaken the cartel’s pricing power. Experts suggest that this move may prompt other members to reconsider their membership. This comes at a time when the organization’s share of global oil markets has declined from 50% historically to approximately 33% today.
Source: Al Jazeera