UAE to Leave OPEC After 60 Years Over Production Restrictions Rules

UAE to Leave OPEC After 60 Years Over Production Restrictions Rules

The United Arab Emirates (UAE) has decided to separate itself from OPEC and OPEC+. This change is expected to start from May 1, 2026, ending its long membership of almost 60 years.

The reason behind the separation is the OPEC rules. The production limits were stopping it from using its full oil capacity. The state oil company ADNOC wants to increase oil production in the future. However, the OPEC rules were restricting it from doing so.

The UAE’s withdrawal will cause the oil prices to increase and decrease sharply. The exit may also weaken OPEC’s hold, and other countries may also exit as well. Also, the balance may be disturbed, which could also increase the risk of a price war.

This comes during a tense period. The Strait of Hormuz is facing a crisis, affecting the oil supplies. There are also conflicts involving Iran. Additionally, the UAE and Saudi Arabia have had disagreements over issues like Yemen and oil production.