UAE says only economics, not politics, affected decision to leave OPEC
The United Arab Emirates says it did not take politics into consideration when it decided to leave OPEC and OPEC+ at the start of May.
Suhail Mohamed Al Mazrouei, who serves the UAE as its energy minister, on Saturday insisted the country’s decision was “rooted in its long-term economic vision, evolving energy capabilities, and enduring commitment to global energy security.”
The Gulf state announced last month that it was ending its 59-year membership with OPEC, the world’s largest oil producer group, amid the war with Iran. Oil prices have surged dramatically because the Strait of Hormuz has been effectively closed to commercial shipping, cutting off the flow of oil for international consumers.
There was speculation that the UAE withdrew from OPEC to distance itself from Saudi Arabia. The two nations have tense relations due to economic and geopolitical rivalries. Al Mazrouei disputed the notion that the countries’ rivalry had anything to do with the UAE’s decision to leave OPEC.
“This decision follows a comprehensive assessment of national production policy and future capacity and is guided exclusively by the UAE’s national interest, its responsibility as a reliable energy supplier, and its steadfast commitment to market stability,” he said on social media.
“It is not driven by political considerations, nor does it reflect any division between the UAE and its partners,” the Emirati official added. “The UAE’s decisions are sovereign, strategic, and guided by national interest, not external speculation.”
Under OPEC, the UAE had an oil production limit of 3 to 3.5 million barrels per day. Now that it is no longer bound to that quota, Abu Dhabi is seeking to increase its production capacity to 5 million barrels per day by next year.
The UAE was OPEC’s third-largest oil producer behind Saudi Arabia and Iraq, so its departure delivers a notable blow to the international alliance.
This week, OPEC reported its crude oil production dropped to 18.98 million barrels per day in April. The broader OPEC+ alliance, which includes 10 non-OPEC nations in addition to the 11 core members, declined to 33.19 million barrels per day.
Due to the geopolitical instability in the Strait of Hormuz, a key waterway for transporting oil, OPEC lowered its 2026 forecast for oil demand growth from 1.38 million barrels per day to 1.17 million barrels per day. Its forecast for 2027 is comparatively more optimistic, with a projected estimate of 1.54 million barrels per day.
Meanwhile, OPEC+ plans to proceed with a “symbolic” production quota increase of 188,000 barrels per day for June despite the unresolved war.
Overall production among OPEC members has fallen by more than 30%, or 9.7 million barrels per day, since the war started.
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