{"id":88267,"date":"2026-04-28T21:39:09","date_gmt":"2026-04-28T21:39:09","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/88267\/"},"modified":"2026-04-28T21:39:09","modified_gmt":"2026-04-28T21:39:09","slug":"uae-to-exit-opec-as-iran-war-drives-oil-above-us111","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/88267\/","title":{"rendered":"UAE to Exit OPEC as Iran War Drives Oil Above US$111"},"content":{"rendered":"

The United Arab Emirates (UAE) has announced plans to leave<\/a> the Organization of the Petroleum Exporting Countries (OPEC) effective on Friday (May 1), marking a significant blow to the oil-producing alliance as geopolitical tensions and supply disruptions continue to roil global energy markets.<\/p>\n

The decision will remove one of the cartel\u2019s largest and fastest-growing producers<\/a> at a time when oil prices remain elevated due to the ongoing Iran war. The conflict has led to the closure of the Strait of Hormuz, a critical shipping lane that typically carries roughly one-fifth of global oil supply. <\/p>\n

Brent crude traded above US$111 per barrel on Tuesday (April 28), more than 50 percent higher than pre-war levels.<\/p>\n

The UAE, which joined OPEC through Abu Dhabi in 1967, has long signaled frustration with production quotas that it said limited its ability to capitalize on billions of dollars invested in expanding domestic output capacity. <\/p>\n

Analysts estimate the country can produce as much as 5 million barrels of oil per day, significantly above the roughly 3.4 million barrels it was pumping before the conflict erupted in late February.<\/p>\n

\"\\u200bGlobal<\/p>\n

Global oil production in 2024.<\/p>\n

In a statement<\/a> carried by the state-run WAM news agency, the UAE said the departure reflects its \u201clong-term strategic and economic vision\u201d and its desire for greater flexibility as it accelerates investment in energy production. The country also confirmed it will exit the broader OPEC+ alliance, which includes Russia.<\/p>\n

The move highlights growing fractures within the producer group, whose influence over global oil markets has weakened in recent years as US production surged above 13 million barrels per day. <\/p>\n

Explaining the impact of the UAE’s departure, Richard Tullis, natural resource analyst at Water Tower Research, noted in an email to the Investing News Network, \u201cOPEC loses an important member that was producing pre-war 3 to 4 percent of global oil production<\/a> and about 11 percent of OPEC production.\u201d <\/p>\n

Market observers have also pointed to rising tensions between the UAE and Saudi Arabia, OPEC\u2019s dominant producer, over both economic strategy and regional politics.<\/p>\n

\u201cThe UAE has reportedly commented on its disappointment that other OPEC members have not done more to help prevent damage to UAE during the war,\u201d Tullis added. <\/p>\n

To hear more from Tullis on the oil market and how investors should be positioning, listen to his March 24 podcast interview<\/a> above.<\/p>\n

The split could further complicate OPEC\u2019s ability to manage prices and coordinate supply.<\/p>\n

\u201cThe UAE’s decision to leave OPEC next month allows the country to pursue its goal of significantly expanding its oil production without OPEC interference,\u201d said Tullis. <\/p>\n

\u201cUAE had the capacity to produce an estimated 4 million to 4.25 million barrels per day in 2025, but was limited to producing about 3.5 million barrels per day for much of the year due to OPEC+ production quotas.\u201d<\/p>\n

He added, \u201cThe UAE has expressed a goal of reaching 5 million barrels per day production by 2027 and could potentially produce its low unit cost oil at an even higher level by the end of the decade if demand warrants it.\u201d<\/p>\n

Although the UAE’s exit will be a blow to OPEC\u2019s oil cartel status, the decision could offer some relief to consumers when the Strait of Hormuz reopens to international trade. As Tullis explained, \u201cFor energy investors, the UAE’s move likely helps provide some oil price<\/a> relief in the medium term, given the UAE’s goal to significantly increase oil production over the next couple of years and assuming the ability to consistently export its oil.” <\/p>\n

Don’t forget to follow us @INN_Resource<\/a> for real-time updates!<\/p>\n

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.<\/p>\n

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.<\/p>\n

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