The United Arab Emirates, one of the world\u2019s major oil producers, will leave the Organization of Petroleum Exporting Countries (OPEC\/OPEC+) effective May 1, state news agency WAM said Tuesday morning.<\/p>\n
The decision \u201creflects the UAE\u2019s long-term strategic and economic vision and evolving energy profile,\u201d WAM wrote on Tuesday, based on \u201cour national interest and our commitment to contributing effectively to meeting the market\u2019s pressing needs.\u201d<\/p>\n
The stunning move from Abu Dhabi is likely to deeply shake the oil alliance, which derives much of its power from a strong consensus and its ability to drive global oil prices through the production power of its members.<\/p>\n
The move is also likely to be seen as a strategic victory for President Trump, who has repeatedly accused the OPEC+ bloc of manipulating oil prices and \u201cripping off\u201d the US.<\/p>\n
While Saudi Arabia has long been seen as the dominant voice among the group of 12 countries, the UAE has in recent years seen its strategic influence rise as Abu Dhabi has strengthened its oil production and its Abu Dhabi National Oil Company, which has raised the country\u2019s international profile.<\/p>\n
The UAE\u2019s decision to exit the cartel comes at a markedly precarious moment for the Middle Eastern oil powers, which have seen their ability to export oil out of the Persian Gulf cut to near zero as Iran has asserted military dominance over the Strait of Hormuz, the world\u2019s most critical chokepoint for global energy flows.<\/p>\n
Read more:\u00a0<\/em>How oil price shocks ripple through your wallet, from gas to groceries<\/em><\/p>\n The global oil market in April faced a 13.7 million barrel per day shortfall due to a combination of halted exports and widespread infrastructure damage from the war in Iran, according to research from Goldman Sachs. Throughout the war, Abu Dhabi has criticized fellow Gulf powers for failing to do more to protect the country from attacks by Iran.<\/p>\n Before the outbreak of war in the Middle East in February, the UAE had ramped its production levels up to roughly 3.6 million b\/d, though that has plummeted to roughly 2.16 million b\/d, according to Bloomberg data. The nation\u2019s available capacity is roughly 4.85 million bpd, though Abu Dhabi is looking to reach 5 million b\/d of capacity by 2027.<\/p>\n Taking the UAE\u2019s pre-war production levels, its decision to leave OPEC means the bloc will lose roughly 12% of its total production, according to estimates from the International Energy Agency.<\/p>\n \u201cAlongside Saudi Arabia, it is one of the few members with meaningful spare capacity \u2014 the mechanism through which the group exerts market influence and responds to supply shocks,\u201d Jorge Le\u00f3n, head of geopolitical analysis at Rystad Energy, told Yahoo Finance.<\/p>\n<\/p><\/div>\n \u201cIts departure therefore removes one of the core pillars underpinning OPEC\u2019s ability to manage the market \u2026 A structurally weaker OPEC, with less spare capacity concentrated within the group, will find it increasingly difficult to calibrate supply and stabilize prices.\u201d<\/p>\n The UAE\u2019s exit also marks the first departure of a Middle Eastern power from the oil cartel since Qatar, the world\u2019s largest producer of liquefied natural gas, exited in 2019.<\/p>\n \u201cWith a large and competitive resource base,\u201d the UAE \u201cwill continue working with partners to develop resources, supporting economic growth and diversification,\u201d according to WAM. By leaving the bloc, the country will no longer be required to conform to production quotas decided on by the group, giving Abu Dhabi independent control of its resources.<\/p>\n \u201cAs oil demand approaches a peak and begins to decline, incentives shift. Producers with spare capacity may prioritize monetizing reserves and protecting market share over collective restraint,\u201d Le\u00f3n said.<\/p>\n \u201cThe UAE \u2026 is particularly well positioned to pursue such a strategy outside the group.\u201d<\/p>\n International oil prices (BZ=F) briefly topped $112 per barrel on Tuesday morning, recovering all losses since President Trump\u2019s initial April 7 ceasefire announcement, as the Strait of Hormuz has remained essentially shuttered despite repeated attempts at peace talks. US oil prices (CL=F) pulled back to $99 after briefly climbing past the $100 mark.<\/p>\n Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at<\/em> jake.co<\/em>nley@yahooinc.com<\/em>.<\/p>\n![\"BEIJING,](\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/M_hR0h5_ov56OHyTxjg_Qg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/uu\/api\/res\/1.2\/iReC_Lpt5dW8_LyTLBz9aw--~B\/aD0yMzc5O3c9MzU2ODthcHBpZD15dGFjaHlvbg--\/https:\/\/d29szjachogqwa.cloudfront.net\/images\/2026-04\/9c0c7717-f0d0-4ffd-861c-fcf58518be07\")