By: Chioma Madonna Ndukwu
UAE Exits OPEC, Delivering Major Setback to Saudi Arabia Amid Global Oil Turmoil
The United Arab Emirates has announced its withdrawal from OPEC, marking a dramatic shift in the global oil market and dealing a significant blow to the Saudi-led alliance.
The decision comes at a tense moment for the energy sector, as the ongoing conflict involving Iran continues to disrupt global crude supplies and heighten concerns over market stability.
The UAE, one of OPEC’s most influential members, said leaving the organisation would allow it greater freedom in shaping its energy policies and better align with its long-term economic ambitions.
Abu Dhabi’s Energy Ministry noted that while the move is historic, immediate market impact is expected to be limited due to existing shipping challenges in the Strait of Hormuz—a vital route through which roughly 20 percent of the world’s oil and liquefied natural gas typically passes.
The UAE first joined OPEC in 1967 through Abu Dhabi and remained a member following the country’s formation in 1971. Its withdrawal is scheduled to take effect on Friday.
Analysts say the departure could weaken OPEC’s ability to manage oil prices effectively, particularly since the UAE, alongside Saudi Arabia, possesses substantial spare production capacity—a key tool the cartel uses to influence global supply.
The development is also seen as a political victory for US President Donald Trump, who has repeatedly criticised OPEC for artificially driving up oil prices.
Trump has long argued that the organisation exploits global consumers while benefiting from American military protection.
Oil prices have surged sharply since the outbreak of hostilities involving Iran, with Brent crude climbing as high as $119.50 per barrel before settling around $111 on Tuesday.
The UAE’s exit follows growing frustration in Abu Dhabi over what it perceives as inadequate support from fellow Gulf and Arab nations in response to repeated Iranian attacks during the regional crisis.
Energy experts warn that the move could trigger a more unpredictable oil market in the years ahead, while raising fresh questions about Saudi Arabia’s ability to maintain its dominant role in stabilising global energy supplies.
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