United Arab Emirates Leaves OPEC In Favor Of ‘National Interest’

BreakingBusinessUnited Arab Emirates Leaves OPEC In Favor Of ‘National Interest’ByMary Whitfill Roeloffs,Forbes Staff. Mary Roeloffs is a Forbes breaking news reporter covering pop culture.Follow AuthorApr 28, 2026, 08:46am EDTApr 28, 2026, 09:56am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Topline The United Arab Emirates has announced it will no longer be a member of the Organization of the Petroleum Exporting Countries, OPEC, starting May 1 after reflecting on its "long-term strategic and economic vision," a move that could impact the group’s ability to control the supply of oil and prices around the world. Tankers are seen at the Khor Fakkan Container Terminal in United Arab Emirates on June 23, 2025. AFP via Getty ImagesKey FactsThe UAE made the announcement to leave the so-called oil cartel via the state-run WAM news agency, and cited “near-term volatility” in the market and a desire to ramp up investment in domestic energy production. The statement referred to the Iran war started by the U.S. and Israel in February, which has choked oil transport through the important Strait of Hormuz, and the government’s desire to meet what it thinks will be the “sustained growth” of energy demand in the medium to long term.The nation’s decision to leave the group comes after it criticized fellow Arab states for not ‌doing enough to protect the region from attacks during the Iran war started by the U.S. and Israel in February, and as it increasingly conflicts with Saudi Arabia, OPEC’s de facto leader. UAE is the third-largest OPEC oil producer, behind Saudi Arabia and Iraq, and its decision to withdraw from the alliance signals internal disputes that could impact the group’s influence over global markets. The United Arab Emirates will also leave OPEC+, a broader alliance formed in 2016 that encompasses OPEC’s 12 core members plus 10 other major producers, including Russia, Mexico and Kazakhstan. Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here: joinsubtext.com/forbes.What To Watch ForChanging oil prices. The price of Brent crude rose 4% to above $105 a barrel Tuesday morning on news President Donald Trump is dissatisfied with Iran's proposal to re-open the Strait of Hormuz, but then slipped to $104 per barrel after UAE announced it would leave OPEC. Brent's price has risen about $10 in the last week. Key BackgroundOPEC was founded in 1960 with a goal of stabilizing prices by boosting output among member countries when supply is tight and lessening production when prices fall. By coordinating how much its 12 members—Saudi Arabia, Iraq, Iran, UAE, Kuwait, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of the Congo and Venezuela—pump at any given time, it's able to influence global energy markets and its decisions can ripple quickly through gasoline prices, inflation and the broader global economy. Leaving OPEC will give UAE more flexibility in responding to market dynamics and allow it to increase oil production as much as leaders deem appropriate, which could, in theory, reduce the global price of oil. The UAE national oil company, the Abu Dhabi National Oil Company, had already set a goal of increasing its crude oil production capacity to 5 million barrels per day (up from 2.94 million in 2023) by 2027. if…

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