economy

May 5, 2026

UAE exits Arab oil group OAPEC after breaking with OPEC, OPEC+

The UAE has withdrawn from OAPEC days after exiting OPEC and OPEC+, citing a strategy to gain greater flexibility over oil output

UAE exits Arab oil group OAPEC after breaking with OPEC, OPEC+

TL;DR

  • The UAE's withdrawal from OAPEC became effective on May 1, the same day it exited OPEC and OPEC+.
  • The decision is part of a long-term strategy for the UAE to gain more flexibility over oil output, free from production caps.
  • OAPEC, established in 1968, is primarily a technical body coordinating energy policy among Arab producers, unlike OPEC's direct role in managing supply and prices.
  • The UAE's exit follows ongoing Middle East turmoil, including the US-Israeli war on Iran and a dual blockade of the Strait of Hormuz.
  • The UAE Minister of Energy and Infrastructure, Suhail Mohammed Al Mazrouei, communicated the withdrawal decision.
  • OAPEC expressed appreciation for the UAE's contributions during its membership.
  • US President Donald Trump welcomed the UAE's exit from OPEC as 'great' news.
  • The UAE is reportedly in talks with Washington over a currency swap line, indicating closer economic ties.
  • Oil markets experienced short-term volatility, but analysts suggest limited near-term impact due to export constraints.
  • Seven OPEC+ members agreed to raise crude production in June 2026, signaling business as usual.
  • The UAE Energy Minister stated the decision was made on 'good terms' and that the UAE will continue working with other oil-producing countries.
  • Russia respects the UAE's sovereign right to withdraw from OPEC and dismissed suggestions of the group's demise.

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