UAE To Quit Oil Production Groups OPEC, OPEC+; major move amid Hormuz blockade

New Delhi: The United Arab Emirates (UAE) has announced its withdrawal from the oil-producing nations' organizations OPEC and OPEC+. The UAE will officially leave both organizations effective May 1, 2026.

What did the Energy Minister say?

The UAE's energy minister said that the decision was taken after a careful review of the energy sector, petroleum sector and other strategies.

The energy minister said the UAE has long been a member of OPEC and OPEC+, but the world will need more energy in the future and demand will grow.

He explained that the world will require more energy in the future, so the UAE has decided to pursue its energy policy independently.

The minister also said that this decision has been taken in view of the current obstacles on the Strait of Hormuz and the instability in the oil market, so that there is no sudden impact on the market.

Is it a big blow to Saudi Arabia?

The UAE's withdrawal from OPEC is being considered a major blow to oil exporting groups and their de facto leader Saudi Arabia, amid the historic energy crisis caused by the Iran war and increased instability in the global economy.

The UAE has long been a key member of OPEC. Its withdrawal could weaken the organization's cohesion and strength. Amid the Iran war and the uncertain situation in the Strait of Hormuz, this decision is exposing OPEC's internal divisions.

Is it a big win for Trump?

Many analysts are viewing the UAE's decision as a major diplomatic victory for US President Donald Trump. Trump has long accused OPEC of exploiting the world by raising oil prices.

The UAE has also criticized other Arab countries in recent days. Anwar Gargash, diplomatic adviser to the UAE president, said that the Gulf Cooperation Council (GCC) countries took a very weak stance, both politically and militarily, during the Iranian attacks.

What does OPEC do?

OPEC (Organization of the Petroleum Exporting Countries) is a permanent intergovernmental organization of oil-producing countries. Established in 1960, the group coordinates the petroleum policies of member countries to stabilize the global oil market and regulate crude oil prices. It is a group of 12 major oil-exporting countries, primarily from the Middle East and Africa.