The United Arab Emirates has decided to exit both the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ due to the ongoing energy crisis resulting from the Iran conflict, which has highlighted divisions among Gulf nations.

Having been a member of OPEC since 1967 through Abu Dhabi and later as an independent country from 1971, the UAE’s departure weakens OPEC’s influence on global oil supply, particularly as one of the group’s major producers. This move could allow the UAE to boost its oil output independently without being subject to OPEC production quotas.

The UAE’s departure was confirmed through its state-run WAM news agency, citing a shift in its long-term strategic and economic vision towards enhancing domestic energy production and playing a responsible role in global energy markets by gradually increasing production in line with market demand.

Energy Minister Suhail Mohamed al-Mazrouei stated that the decision was made after a thorough assessment of the country’s energy strategies without consulting other nations. The strained relations between the UAE and Saudi Arabia, OPEC’s leading member, have been escalating over political and economic issues in the Middle East amid attacks from Iran.

The exit from OPEC comes as a significant development, aligning with the UAE’s pushback against OPEC production limits, especially due to the current low global spare capacity, which tightens the oil market. Analysts highlight the UAE’s importance as a key player with spare production capacity, potentially impacting Saudi Arabia’s role as the market stabilizer.

While the UAE’s withdrawal is not expected to immediately impact oil markets due to the ongoing Iran conflict constraining global oil supplies, it could lead to greater market instability in the future. This move reflects a broader shift in the international landscape, where individual interests often outweigh multilateral alliances, indicating a changing geopolitical era.