What is OPEC? Why is the UAE leaving it?
The United Arab Emirates (UAE) has announced its withdrawal from OPEC, the Organization of Petroleum Exporting Countries, citing a desire to increase oil production beyond OPEC's output quotas. The move comes amid a global fuel crisis triggered by the Iran war and blockades in the Strait of Hormuz, which continue to disrupt oil supplies. While the UAE plans to boost production to up to 5 million barrels per day by 2027, analysts expect little short-term impact on oil prices due to ongoing supply constraints.
- ▪The UAE is leaving OPEC to free itself from production quotas and plans to increase its oil output to as much as 5 million barrels per day by 2027.
- ▪OPEC coordinates petroleum policies among member countries to stabilize oil markets, with its share of global oil production reaching nearly 50% in 2025 before dipping to 44% in March 2026.
- ▪The ongoing blockades in the Strait of Hormuz are currently having a greater impact on oil prices than the UAE's exit from OPEC.
- ▪Experts suggest the UAE's decision is driven by the anticipated peak in global oil demand as the world shifts toward renewable energy sources.
- ▪Increased oil production from the UAE could eventually put downward pressure on crude prices, helping to restore balance to the global oil market.
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What is OPEC? Why is the UAE leaving it?Topic:Oil and GasWed 29 Apr 2026 at 2:31pmWed 29 Apr 2026 at 2:31pmWed 29 Apr 2026 at 2:31pmOPEC is an alliance of oil-producing countries, but not every country that exports oil is a member. (Reuters: Dado Ruvic)abc.net.au/news/why-the-uae-is-leaving-international-oil-producers-group-opec/106619310Link copiedShareShare articleThe United Arab Emirates (UAE) says it is pulling out of an international oil-producers' group called OPEC.It comes amid the fuel crisis sparked by the Iran war and subsequent blockades of the major oil shipping route, the Strait of Hormuz.Here's why it matters.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).