The End of the UAE’s OPEC Era

The UAE officially left OPEC on May 1, 2026, ending nearly six decades of membership as it sought greater flexibility over its expanding oil production capacity, according to the US Energy Information Administration. Before its departure, the UAE was OPEC’s third-largest producer, pumping about 3.4 million barrels per day and accounting for roughly 4% of global crude oil output.

The move comes amid major disruptions caused by the conflict involving Iran and the effective closure of the Strait of Hormuz, a critical chokepoint for global energy exports. Unlike many regional producers, the UAE has been able to reroute a significant portion of its exports through the Abu Dhabi Crude Oil Pipeline to the port of Fujairah, while Saudi Arabia has relied on its East-West pipeline to move oil to the Red Sea.

Despite leaving OPEC, the UAE remains an important player in the broader OPEC+ group, whose coordinated production decisions continue to influence global oil prices. The departure reduces OPEC’s share of global crude production from roughly 35% to 31%, but the UAE’s growing production capacity and export infrastructure investments position it to remain a major force in global energy markets.