The United Arab Emirates (UAE) has announced its departure from OPEC and OPEC+, a decision attributed to its economic vision rather than political motivations, according to Energy Minister Suhail Mohamed Al Mazrouei.
He emphasized that this choice was made after a thorough evaluation of the UAE's national production policy and future capabilities, focusing on the country's interests as a reliable energy supplier and its commitment to market stability. The UAE has been a member of OPEC since 1967, and its exit is framed as a strategic move aligned with its long-term economic goals and energy sector evolution.
Prior to the ongoing conflict affecting production, the UAE was producing over 3 million barrels per day, consistent with OPEC+ targets, but current output has dropped to between 1.8 and 2.1 million barrels per day. The UAE, alongside Saudi Arabia, holds significant spare production capacity, which is crucial for influencing oil prices and responding to supply disruptions.
Following the announcement, oil prices saw an increase, with Brent crude futures rising over 3% to $109.26 per barrel and U.S. West Texas Intermediate futures up more than 4% to $105.42 per barrel.
Additionally, the UAE is accelerating the construction of a new pipeline to enhance its oil export capacity and mitigate risks associated with the Strait of Hormuz, with the project expected to be operational by 2027. This development comes amid ongoing pressures on global energy supplies and challenges in restoring normal output due to regional instability