The United Arab Emirates has announced it will leave OPEC and OPEC+ effective May 1, 2026, marking one of the most significant departures from the oil cartel in decades. The move removes its third-largest producer amid a major energy supply shock caused by conflict in the Middle East, with oil prices already elevated. The UAE intends to increase its production independently, leveraging infrastructure that bypasses the key Strait of Hormuz chokepoint.
The UAE’s exit from OPEC and OPEC+ was announced unilaterally and will take effect on May 1, 2026. UAE Energy Minister Suhail Al Mazrouei confirmed the decision was made without consulting Saudi Arabia or other members, describing it as a clean policy call. He stated the timing was chosen to minimize impact, saying, “Our exit at this time is the right time for it, because it will have a minimum impact on the price and it will have a minimum impact on our friends at OPEC and OPEC+.”
The announcement comes during the US-Israel war on Iran, a conflict which has throttled shipments through the Strait of Hormuz and caused a historic energy shock. Oil prices, which had reached as high as $119.50 per barrel since the war started, climbed another 3% to around $111 on the day of the news. The disruption had already cut OPEC output by 27% to 20.79 million barrels per day in March.
Dr. Sultan Al Jaber, managing director and group CEO of Abu Dhabi National Oil Company (ADNOC), stated the decision aligns with the nation’s long-term strategy and capability. An energy industry source familiar with the decision added, “This decision is good for consumers and good for the world… The UAE will gradually increase production to supply global markets, once freedom of navigation is restored in the Strait of Hormuz.”
Analysts noted the strategic advantage the UAE holds through its Fujairah Pipeline, which bypasses the Strait of Hormuz entirely. This gives the country an independent export route for up to 2 million barrels per day. With 1.5 million barrels per day of spare capacity currently and a production target of 5 million barrels per day by 2027, the UAE is positioned to ramp up output outside the OPEC quota system immediately upon its departure.
