UAE to Quit OPEC After Nearly 60 Years

The United Arab Emirates announced it will quit OPEC on May 1, departing after nearly 60 years as a member in a move that has sent shockwaves through the global energy market. The UAE, the fourth-largest producer in OPEC+, pumped approximately 3.4 million barrels per day, representing about 3% of the world's crude supply before the ongoing US-Israeli war on Iran forced production cuts and facility shutdowns. Russia, the second-largest producer in the alliance, said it plans to remain despite the UAE's exit and hopes the broader OPEC+ coalition will continue operating. Kremlin spokesperson Dmitry Peskov called OPEC+ an important organization for stabilizing global energy markets, while Russian Finance Minister Anton Siluanov warned that uncoordinated production policies following the UAE's departure could drive prices lower. Siluanov noted that current oil prices are supported by the effective closure of the Strait of Hormuz, with any oversupply risk emerging only after shipping through the vital chokepoint recovers. The UAE's departure marks the most significant exit from OPEC+ since the alliance was formed in 2016, when Russia joined the coalition to counterbalance rivals' growing production. Tensions between Abu Dhabi and Riyadh over production quotas, with the UAE seeking higher allocations to reflect its expanded capacity from a $150 billion investment program, have been building for years amid disagreements over conflicts in Sudan, Somalia, and Yemen. The exit reduces OPEC+'s control over global production from approximately 50% to around 45%, though analysts say Iraq has no plans to leave and the broader alliance is unlikely to collapse as Saudi Arabia retains significant spare capacity.