UAE’s exit from OPEC gives it greater flexibility to boost output as oil markets remain tight.
Dubai: Donald Trump has welcomed the UAE’s decision to exit OPEC, saying the move could help ease oil and fuel prices at a time when the Iran war is keeping global energy markets under pressure.
“I think it’s great,” Donald Trump told reporters at the White House on Wednesday when asked about the UAE’s decision.
“I think ultimately it’s a good thing for bringing gas and oil prices down, and easing costs overall,” he added. “They’re having some problems in OPEC.”
The UAE announced on Tuesday that it will leave the Organization of the Petroleum Exporting Countries and the broader OPEC+ alliance effective May 1, 2026. The move ends nearly six decades of participation in coordinated oil production policy and gives the country greater flexibility to set output based on its own capacity plans and market conditions.
The move comes at a sensitive time for global energy markets. Oil prices have remained elevated amid the Iran war, while restrictions around the Strait of Hormuz have added strain on shipping and supply routes. Any shift in production policy by a major Gulf producer is likely to be closely watched by traders, governments and consumers.
The UAE joined Organization of the Petroleum Exporting Countries through Abu Dhabi in 1967 and remained a member after the federation was formed in 1971. It has since been a key Gulf producer within the group, alongside Saudi Arabia and Kuwait. Middle East producers account for roughly 30% of global oil supply, making any shift in the region’s production strategy significant for the wider market.
Why did the UAE leave OPEC?
The UAE said its decision followed a comprehensive review of its production strategy, current capacity and long-term energy plans. State news agency WAM noted that the move reflects the country’s national interest and its aim to respond more flexibly to market needs while continuing to support global energy stability.
In practical terms, exiting the Organization of the Petroleum Exporting Countries gives the UAE greater freedom to adjust output based on its own capacity expansion goals rather than coordinated quotas.
UAE Energy Minister Suhail Mohamed Al Mazrouei described the move as a policy decision taken after a detailed review.
“This is a policy decision, made after a careful assessment of current and future production-related policies,” he told Reuters, adding that the UAE did not raise the issue with other countries beforehand.
The country has been investing heavily in expanding its production capacity and aims to increase output from about 3.4 million barrels per day to 5 million barrels per day by 2027. Exiting the Organization of the Petroleum Exporting Countries and the OPEC+ alliance removes it from quota commitments, giving it greater flexibility to bring new capacity to market when it sees fit.
In an interview with CNBC, Al Mazrouei said the decision followed “a very careful and long review” of policy.
“The decision to operate outside any constraints is important for us to ensure we respond to market conditions at the right time and at the right pace,” said Suhail Mohamed Al Mazrouei.
He added that the timing was carefully chosen to minimise any disruption to prices.
“We believe the world is currently undersupplied, and our exit at this time is appropriate, as it will have minimal impact on prices,” he said.
Suhail Mohamed Al Mazrouei linked the timing to ongoing shipping restrictions in the region.
“Timing is right because it will not significantly impact the market and prices, as the Strait of Hormuz is closed and restricted,” he said, describing the move as a “sovereign national decision.”
Sultan Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC, said the decision reflects a sovereign approach aligned with the UAE’s long-term strategy and efforts to maintain market stability.
The UAE said it continues to value its long-standing cooperation with the Organization of the Petroleum Exporting Countries, but the current phase calls for faster decision-making and greater flexibility to respond to shifts in global demand. Suhail Mohamed Al Mazrouei added that the country remains committed to working with other producers to support global energy security.
