What is OPEC? Why is the UAE leaving it?
The United Arab Emirates (UAE) is leaving OPEC, the Organization of Petroleum Exporting Countries, to free itself from production quotas and increase oil output amid rising global demand and concerns over future oil profitability. The move comes during an ongoing fuel crisis linked to the Iran war and blockades in the Strait of Hormuz. While the UAE's exit may not immediately affect oil prices, analysts suggest its planned production increase could eventually put downward pressure on crude prices. OPEC, formed in 1960, coordinates oil policies among member nations to stabilize markets, but has long been criticized as a cartel.
- ▪The UAE is leaving OPEC to escape production quotas and plans to increase its oil output to up to 5 million barrels per day by 2027.
- ▪OPEC coordinates petroleum policies among member countries to stabilize oil markets, but critics describe it as a cartel due to its influence on prices.
- ▪The UAE's exit is effective immediately, reducing OPEC's global oil production share amid ongoing supply disruptions from the Strait of Hormuz blockades.
- ▪OPEC+ includes non-OPEC allies like Russia and Mexico, expanding the group's influence beyond the core 13-member OPEC bloc.
- ▪Other countries, including Qatar and Ecuador, have previously left OPEC, citing sovereignty and economic strategy reasons.
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What is OPEC? Why is the UAE leaving it?Topic:Oil and Gas21m ago21 minutes agoWed 29 Apr 2026 at 4:31amOPEC is an alliance of oil-producing countries, but not every country that exports oil is a member. (Reuters: Dado Ruvic)abc.net.au/news/why-the-uae-is-leaving-international-oil-producers-group-opec/106619310Link copiedShareShare articleThe United Arab Emirates (UAE) says it is pulling out of an international oil-producers' group called OPEC.It comes amid the fuel crisis sparked by the Iran war and subsequent blockades of the major oil shipping route, the Strait of Hormuz.Here's why it matters.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).