UAE Announces OPEC Exit Effective May 1st

The United Arab Emirates said Tuesday it will leave OPEC effective May 1st, removing one of the group’s largest producers.

The decision follows ongoing discussions over production quotas, with the UAE previously signaling that limits were below its desired output levels despite recent investments to expand capacity, according to sources. The possibility of withdrawal had been reported in recent years.

The move comes after Qatar exited the group in 2019. It also follows a period of strained relations between the UAE and Saudi Arabia, as well as broader regional tensions involving Iran.

Global oil supplies remain constrained due to the war in Iran, which has closed the Strait of Hormuz, a key transit route for a significant share of global oil shipments.