UAE Leaves OPEC Oil Cartel in May, Dealing Major Blow to Saudi-Led Group
The United Arab Emirates announced Tuesday it will quit OPEC and OPEC+ in May. The move deals a heavy blow to the oil cartel led by Saudi Arabia.
The United Arab Emirates announced Tuesday it will leave both OPEC and OPEC+ in May, delivering a major blow to the oil cartel that has controlled global oil prices for decades.
The UAE's energy minister, Suhail al-Mazrouei, said the decision "reflects a policy-driven evolution aligned with long-term market fundamentals." He announced the move on social media.
OPEC, led by Saudi Arabia, includes 13 oil-producing countries that work together to control how much oil they pump. This affects oil prices worldwide. OPEC+ includes additional countries like Russia.
The UAE is one of OPEC's biggest oil producers and has been a member for decades. Its departure weakens Saudi Arabia's ability to control global oil markets and could signal cracks in the cartel's unity.
The move comes as oil producers face pressure from changing energy markets and the global shift toward renewable energy. Some OPEC members have disagreed over production limits in recent years.
OPEC controls about 40% of global oil production and helps set gas prices worldwide. When major oil producers leave the group, it weakens OPEC's power to control oil prices, which could mean more unpredictable gas costs at the pump.
Watch for oil price changes and reactions from Saudi Arabia and other OPEC members. The UAE officially leaves in May.
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