UAE Plans to Exit OPEC After 60 Years – Major Shift in Global Oil Dynamics

The United Arab Emirates is reportedly preparing to leave OPEC after nearly six decades of membership, signaling deep tensions within the cartel — particularly with Saudi Arabia — over production quotas. What’s Driving the Move? Production Limits: The UAE wants to increase oil output significantly, while OPEC (led by Saudi Arabia) continues to enforce supply restrictions to support higher prices. Geopolitical Strain: Ongoing conflicts in the region, including the Iran situation, have intensified disagreements. Strait of Hormuz Risk: Current disruptions in this critical chokepoint (which handles ~20% of global oil supply) are already limiting exports and adding pressure. The UAE currently accounts for around 12% of OPEC’s total output. Its departure would meaningfully weaken the cartel’s ab...