UAE exits OPEC+ May 1

The United Arab Emirates said on April 28 that it will leave OPEC and OPEC+ on May 1 after nearly 60 years in the group. (wam.ae) (reuters.com) The UAE said the move followed a review of its production policy, current and future capacity, and national interest. Energy Minister Suhail Al Mazrouei said Abu Dhabi still wants “minimum impact” on oil prices and on its OPEC partners. (wam.ae) (cnbc.com) Leaving the group frees the UAE from production targets set with Saudi Arabia, Russia and other exporters to manage supply. Reuters reported that OPEC+ delegates and analysts expect the alliance to keep coordinating, but with less control over global output. (reuters.com) The UAE is one of the cartel’s biggest producers. Reuters said it was pumping about 3.4 million barrels a day before the war with Iran disrupted Gulf exports, while CNBC said it ranked behind Saudi Arabia and Iraq inside OPEC. (reuters.com) (cnbc.com) Abu Dhabi has spent heavily to expand capacity and wants more room to use it. Reuters said the country can reach 5 million barrels a day of crude and liquids, and Al Mazrouei told CNBC the UAE is targeting that capacity by 2027. (reuters.com) (cnbc.com) The timing lands in the middle of a shipping crisis in the Strait of Hormuz. The UAE said Gulf disruptions are affecting supply dynamics, and Reuters reported that the effective closure of Hormuz limits how much extra oil Abu Dhabi can export right now. (wam.ae) (reuters.com) Oil still rose on April 28 because traders were more focused on lost barrels than on the prospect of future UAE independence. Reuters reported that prices finished nearly 3% higher as supply worries tied to Hormuz outweighed the cartel split. (reuters.com) The break also reopens a long-running argument inside OPEC over quotas. Reuters said the UAE had pressed for a bigger production ceiling after expanding capacity under a $150 billion investment program, while analysts said Abu Dhabi had been trying for years to monetize that spending. (reuters.com) The UAE joined OPEC in 1967 through Abu Dhabi and stayed on after the federation was formed in 1971. On May 1, it becomes the biggest producer ever to walk away from the group and test how much discipline OPEC+ can keep without it. (wam.ae) (reuters.com)