UAE Says It Has Quit OPEC and OPEC+ as Oil Prices Turn Volatile

According to the Emirates News Agency, the United Arab Emirates will leave OPEC and OPEC+ on May 1, while Russia said such a move could raise output and pressure global oil prices.

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Summary

According to the Emirates News Agency, the United Arab Emirates said it will leave OPEC and OPEC+ on May 1 and gradually increase oil production after its departure. Reporting says the move comes during severe energy market stress tied to the Iran war, tensions over protection from Iranian attacks, and supply concerns around the Strait of Hormuz. Russia separately said a UAE exit from OPEC could increase oil output and put downward pressure on global crude prices, underscoring the supply implications of a break from coordinated production policy. Earlier reporting said oil prices turned volatile immediately after the news, initially falling 3% before rebounding above $100, while another source linked the disruption to Bitcoin falling below $76,000. One source also described the UAE as exiting OPEC after 59 years, though that claim was not further substantiated in the underlying report.

Terms & Concepts
  • OPEC+: A broader coalition of oil producers that includes OPEC members and partner countries coordinating output policy.
  • OPEC: The Organization of the Petroleum Exporting Countries is a group of oil-producing nations that coordinates production policy to influence global oil supply and prices.
  • Strait of Hormuz: A narrow shipping route in the Gulf through which a large share of global oil supplies passes, making disruptions significant for world markets.