UAE withdraws from OPEC, ending 60-year membership

The United Arab Emirates formally withdrew from the Organization of the Petroleum Exporting Countries on May 1, ending nearly 60 years of membership in a move that strips the cartel of its third-largest producer and signals a fundamental shift in Gulf regional dynamics. The decision, which had been under internal deliberation for roughly three years, took effect amid the ongoing closure of the Strait of Hormuz, limiting its immediate impact on global oil markets but carrying significant long-term implications for supply and pricing.

Senior Emirati officials framed the departure as an economic calculation rooted in the belief that the world is approaching what one adviser described as the autumn of the hydrocarbon age. Anwar Gargash, an adviser to UAE President Sheikh Mohamed bin Zayed Al Nahyan, said the country wants to maximize its oil revenue while it can. The core frustration driving the exit was OPEC production quotas that kept the UAE well below its actual capacity. The UAE has the ability to produce approximately 4.85 million barrels per day and aims to increase that to 5 million barrels per day by 2027, but its previous output target under OPEC was closer to 3.5 million...