Summary
- The United Arab Emirates said it will leave OPEC and OPEC+, with the withdrawal taking effect on May 1.
- The UAE government said the decision reflects its long-term strategy, economic vision and plans to expand investment in energy production.
- Markets are focused on the possibility that the UAE could increase oil output and that OPEC's influence under Saudi leadership could weaken.
Forecast Trend Report by Period
The United Arab Emirates will leave OPEC and OPEC+ effective May 1, Reuters reported on April 28.
The UAE government announced through state-run WAM that it will formally withdraw from both groups starting May 1.
Officials said the decision reflects the country's long-term strategy, economic vision and plans to expand investment in energy production. The move is intended to give the UAE greater flexibility in setting crude output policy.
The UAE's energy minister told Reuters the withdrawal will release the country from OPEC and OPEC+ production quota obligations. There were no prior consultations with other countries, including Saudi Arabia, he said.
OPEC and OPEC+ have managed supply through production quotas for member countries. The UAE's departure means it will pursue its own oil production policy outside those limits.
Markets are watching whether the UAE will increase output after the exit. The government said it will adjust supply gradually and cautiously in line with market conditions.
Qatar left OPEC in 2019. If the UAE, another major oil producer, also leaves, that could fuel questions about the influence of the Saudi-led group.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
