UAE to Leave OPEC+ Effective May 1 Over Quota Disputes

The United Arab Emirates announced its departure from the Organization of the Petroleum Exporting Countries and its allied group effective May 1, citing a need for greater flexibility in production policy amid longstanding disputes over quotas and its expanding capacity.

UAE Energy Minister Suhail al-Mazrouei told Reuters the move followed a review of the country's current and future energy policies, allowing it to increase output once exports through the Strait of Hormuz resume. "It's not going to hugely impact the market, the market is undersupplied," al-Mazrouei said, pointing to ongoing disruptions from the Iran war that have curtailed regional shipments. ADNOC Upstream CEO Musabbeh al-Kaabi described the exit as a "sovereign decision taking into account the long-term strategic and economic interest of the country," enabling the state oil company to deliver low-cost, low-carbon barrels without quota constraints.

The UAE, OPEC's third-largest producer before the war, has invested heavily to raise capacity to 5 million barrels per day by 2027, up from quotas that limited output to around 3 million barrels per day. Previously, up to a third of its capacity sat idle, costing...