End Of An Era: UAE Announces Exit From OPEC After Almost 60 Years

By Rotela Oguns

The United Arab Emirates (UAE) has announced its exit from the Organization of  the Organization of the Petroleum Exporting Countries (OPEC) after nearly 60 years of membership.

The Middle East nation is also terminating its membership of OPEC+, a wider alliance of the oil cartel.

UEA’s Minister of Energy, Suhail Mohammed AlMazrouei announced the momentous decision on his verified X handle on Tuesday.

According to the post, AlMazrouei noted that the country’s decision to leave OPEC also aligns with policy developments in the energy sector.

“The UAE’s decision to exit OPEC aligns with sector policy-driven developments and is consistent with long-term market fundamentals,” he said.

“We express our appreciation to OPEC and member states for decades of constructive cooperation.”

The energy minister reaffirmed the UAE’s commitment to energy security by providing reliable, responsible, and low-emission supplies, supporting global market stability.

The development comes amid ongoing tensions in the Middle East due to the conflict between the United States, Israel, and Iran, which has significantly disrupted the global economy and pushed energy prices to astronomical levels.

UAE, which joined OPEC in 1967, is a major global oil producer.

This development will significantly affect global oil production as the UAE  produces 2.9 million barrels in a year.

Analysts believe that with the UAE’s exit, the oil group could lose about 15 percent of its capacity and “one of its most compliant members”.

OPEC has 12 members, including Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the UAE, and Venezuela, which together control around 30 percent of the global oil supply.

The UAE’s departure will leave the oil cartel with 11 members, putting pressure on Saudi Arabia — which produces nine million barrels of oil — to keep the remaining member nations together.