In a move that deals ⁠a heavy ⁠blow to the oil exporting groups, UAE has announced that it will quit the Organization of the Petroleum Exporting Countries (OPEC) OPEC and OPEC+ from May 1, 2026.

It said the decision aligns with the its long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production. “It also reinforces the UAE’s commitment to its role as a responsible and reliable producer that anticipates the future of global energy markets,” UAE’s state news agency reported.

It added that the decision is also driven by national interests and the country’s commitment to actively contributing to meeting the urgent needs of the market, “particularly given the ongoing geopolitical volatility in the near term, stemming from disruptions in the Arabian Gulf and the Strait of Hormuz, which impact supply dynamics.”

With UAE’s announcement to leave from May 1, OPEC will have 11 remaining members.

The Organization of the Petroleum Exporting Countries (OPEC) is a grouping of countries that coordinate and unify petroleum policies. According to OPEC’s mission statement, member countries ensure the “stabilisation of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”

The grouping, which was created in 1960, includes Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Libya, Nigeria, Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Members meet regularly to set oil production targets and coordinate output to manage global oil prices. They collectively produce about 35 percent of the world’s crude oil and account for about 50 percent of all the oil traded globally.

In 2016, due to falling oil prices, OPEC signed an agreement with 10 other oil-producing countries, including Russia, to create what is now known as OPEC+.

More to come…