UAE quits OPEC and OPEC+ amid regional tensions and energy market turmoil

Abu Dhabi: The United Arab Emirates said on Tuesday that it was leaving the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC+, in a move described as a major setback for the oil-producing alliances and for Saudi Arabia, which is widely seen as their leading force.

The departure comes at a time when the war involving Iran has triggered a severe energy shock and added to uncertainty in the global economy. The UAE has long been a member of OPEC, and its exit is likely to deepen strains within the grouping, which has generally tried to maintain a common position despite differences over geopolitical matters and production limits.

Oil producers in the Gulf that are part of OPEC have already been facing difficulties in moving exports through the Strait of Hormuz, the narrow waterway between Iran and Oman. The route normally carries about a fifth of the world’s crude oil and liquefied natural gas, but Iranian threats and attacks on vessels have disrupted shipping.

The UAE’s withdrawal also marks a political gain for United States President Donald Trump, who has repeatedly criticised OPEC over oil prices. Trump has accused the organisation of ripping off the rest of the world by inflating oil prices. He has also tied US military backing for Gulf states to the issue of energy prices, saying that while the United States protects OPEC members, they exploit this by imposing high oil prices.

The decision followed criticism by the UAE, a major regional commercial centre and a key US ally, of other Arab countries for what it said was an inadequate response to repeated Iranian attacks during the war.

UAE official criticises Arab and Gulf response

Anwar Gargash, diplomatic adviser to the UAE president, spoke about the issue during a session at the Gulf Influencers Forum on Monday. He said Gulf and Arab states had fallen short in their response to the attacks.

Gargash said “The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically”.

He further said “I expect this weak stance from the Arab League and I am not surprised by it, but I haven't expected it from the [Gulf] Cooperation Council and I am surprised by it”.

The UAE’s decision to leave both OPEC and OPEC+ is being seen as a significant development for the global oil market at a moment of heightened regional instability. The move removes a longstanding member from the producer alliance at a time when the group is already under pressure from conflict-related disruptions and internal disagreements.

The development also raises fresh questions about cohesion within the oil-producing bloc, which has for years sought to project unity even as member states differed on key political and production issues.