Dubai, Apr 29 (BNP): In a major development for the global energy sector, the United Arab Emirates (UAE) has announced that it will leave the OPEC and OPEC+ groups of oil-producing nations next month, ending nearly six decades of membership and raising fresh questions over the future of the cartel.
The UAE said the decision follows recent investments aimed at boosting its oil production capacity and would help the country meet growing global energy demand in the long term. Officials stated that leaving the group would provide greater flexibility in shaping its own production strategy without quota obligations.
The move is being seen as a significant blow to OPEC, with analysts warning it could weaken the alliance’s ability to influence global oil prices. Energy researcher Saul Kavonic described the development as “the beginning of the end of OPEC,” noting that the UAE accounts for a substantial share of the group’s production capacity.
The UAE joined OPEC in 1967 and its departure will reduce the cartel’s membership to 11 nations. OPEC was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to coordinate oil production and safeguard the interests of exporting nations.
Market analysts believe the exit could trigger greater volatility in crude prices, as traders assess whether the UAE will ramp up independent production and whether other members may reconsider their positions.
The decision is also being viewed through a geopolitical lens, as it may pave the way for closer energy ties between the UAE and the United States at a time of shifting global alliances.
