UAE exits OPEC amid regional tensions, reshaping oil blocs; OPEC still a cartel of top producers coordinating supply and markets.
Eight OPEC+ countries, including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have agreed to increase oil production by 206,000 barrels per day starting in May 2026. The move follows a recent surge in oil prices caused by the closure of the Strait of Hormuz, which has disrupted exports from key Gulf producers. Nigeria remains sidelined due to its inability to meet quotas. The decision reflects a cautious approach to market stability as disruptions continue.
The United Arab Emirates has announced it has withdrawn from OPEC and the OPEC+ alliance effective May 1, saying a review of its production policy and expanded domestic capacity require greater national control. The move removes a major spare-capacity holder and will weaken OPEC's ability to stabilise global oil supply when Gulf shipping resumes.
The UAE has exited OPEC and is re-evaluating its multilateral commitments, signaling a shift in Gulf dynamics. Riyadh and Abu Dhabi remain economically intertwined despite strategic disagreements, with both states prioritizing autonomy and continued trade.
The UN World Food Programme has warned that higher oil prices and disrupted trade have pushed an extra 2.5 million people in Somalia, 2.3 million in Afghanistan and 1.3 million in Sri Lanka into acute food insecurity, and that up to 45 million more people globally could face hunger if fuel stays near $100 a barrel through June 2026. The agency has also reported funding shortfalls that are forcing it to cut aid and will leave 1.5 million fewer people served this year.