Stocks Market
UAE to Exit OPEC and OPEC+ Effective May 1, 2026, Shaking Global Energy Cartel
The United Arab Emirates announced on April 28, 2026, that it will withdraw from OPEC and OPEC+ effective May 1, 2026, in a move that deals a major blow to the oil cartels and their leader Saudi Arabia. The surprise exit comes as the Iran war triggers a historic energy shock and global economic instability, and threatens to fragment OPEC further amid existing internal disputes over production quotas and geopolitics.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
Global energy markets were rocked on Tuesday, April 28, 2026, by a surprise announcement from the United Arab Emirates confirming it will formally withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance effective May 1, 2026.
The move delivers a major blow to both oil-producing groups, as well as their de facto leader Saudi Arabia, at a critical juncture: the ongoing war in Iran has triggered a historic energy shock that is actively destabilizing the global economy.
UAE has been a member of OPEC since 1967, more than half a century after the cartel was founded in 1960. Its unexpected exit threatens to sow widespread disorder and weaken the grouping, which has long prioritized presenting a unified front to global markets despite persistent internal disagreements over issues ranging from geopolitical alignments to individual production quotas.
The announcement comes as Middle East tensions push Brent crude prices above $106 per barrel, with regional instability already causing wild swings in oil markets: earlier in April 2026, news of the reopening of the Strait of Hormuz sent oil prices crashing more than 11% in a single session.
This report includes coverage from Reuters.