UAE exit from OPEC signals closer alignment with US interests, experts say
The United Arab Emirates has officially exited OPEC, a move experts say could weaken the cartel's control over oil prices and align the UAE more closely with US energy interests. The UAE has long sought to exceed OPEC production quotas to increase its oil output and meet rising global demand, especially amid supply disruptions caused by the ongoing conflict involving Iran and the closure of the Strait of Hormuz. As oil prices surge due to the crisis, the US is expected to benefit from greater oil market competition and potentially lower energy costs.
- ▪The UAE's exit from OPEC took effect on May 1, 2026, allowing it to increase oil production beyond previously imposed quotas.
- ▪The Strait of Hormuz remains blocked due to the US-Israel war on Iran, disrupting 20% of global oil and gas transit and driving prices higher.
- ▪Experts suggest the UAE's increased oil supply could add about 2 million barrels per day to the market once conditions normalize.
- ▪The US government is expected to welcome the UAE's move as it may reduce OPEC's influence over global oil pricing.
- ▪Rising oil prices have contributed to inflation concerns in the US, affecting consumer sentiment ahead of the 2026 midterm elections.
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EDITOR'S ANALYSISEconomy|OPECUAE exit from OPEC signals closer alignment with US interests, experts sayUAE wants to supply more oil than its OPEC quota and that could help push down prices once the Strait of Hormuz opens.ListenListen (6 mins)SaveClick here to share on social mediashare-nodesSharefacebookxwhatsapp-strokecopylinkgoogleAdd Al Jazeera on GoogleinfoWith oil demand shooting up, the UAE is ready to step in with higher supplies, and lower prices in the process [File: Michael Probst/AP Photo]By Megha BahreePublished On 1 May 20261 May 2026As the United Arab Emirates’s exit from OPEC officially takes effect, experts say the United States government will welcome the move for its potential to curb the oil-producing cartel’s pricing power.While the UAE’s withdrawal, which went into…
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