The United Arab Emirates will leave the Organization of the Petroleum Exporting Countries (OPEC) next month, dealing a significant blow to the cartel and raising questions about its future as the industry grapples with massive supply disruptions caused by the Iran war.
The UAE’s exit on May 1, after 60 years of membership, marks the culmination of years of tension with OPEC leader Saudi Arabia over oil output policy and competition for regional political influence. It also signals how the conflict is reshaping global energy markets.
While the UAE has previously discussed quitting OPEC, Energy Minister Suhail Al Mazrouei stated in an interview that the disruption caused by the war created an opportune moment for the move. “This is a decision that we took after a very careful and long review of all our strategies,” he said. “The decision is taken at the right time in our view because it’s not going to hugely impact the market: the market is undersupplied.”