{"id":635680,"date":"2026-04-29T05:07:23","date_gmt":"2026-04-29T05:07:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/635680\/"},"modified":"2026-04-29T05:07:23","modified_gmt":"2026-04-29T05:07:23","slug":"the-uae-has-quit-opec-what-does-it-mean-for-the-future-of-oil-national","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/635680\/","title":{"rendered":"The UAE has quit OPEC. What does it mean for the future of oil? – National"},"content":{"rendered":"

The United Arab Emirates<\/a> is leaving OPEC<\/a> and OPEC+, the world\u2019s most powerful blocs of oil-exporting countries, six decades after joining it as the blockage of the Strait of Hormuz amid the Iran war continues to pressure oil prices across the world.<\/p>\n

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The kingdom took a \u201cpolicy-driven\u201d decision to leave the bloc, said the country\u2019s energy minister Suhail bin Mohammed al-Mazrouei.<\/p>\n

\u201cThe UAE\u2019s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals,\u201d he said in a social media post.<\/p>\n

\u201cWe thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets,\u201d the statement added.<\/p>\n

The kingdom will exit OPEC on Friday, May 1.<\/p>\n

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This reduces the membership of the Organization of the Petroleum Exporting Countries to 11. OPEC was founded in 1960, with the UAE joining in 1967. In 2016, a new bloc called OPEC+, which includes Russia, was created.<\/p>\n

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Canada, along with Egypt, Norway and Oman, is an observer state within the bloc.<\/p>\n

Asked by reporters in Ottawa about the UAE\u2019s decision, International Trade Minister Maninder Sidhu said the federal government was doing its part to try and lower fuel costs for Canadians, pointing to the fuel excise tax cut and last year\u2019s cancellation of the consumer carbon price.<\/p>\n

\u201cWe need to continue working with partners around the world, including the UAE,\u201d he said.<\/p>\n

The loss of the\u00a0UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.<\/p>\n

Al-Mazrouei told Reuters the decision was taken after a careful look at the regional power\u2019s energy strategies.<\/p>\n

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Asked whether the\u00a0UAE\u00a0consulted with Saudi Arabia, he said the\u00a0UAE\u00a0did not raise the issue with any other country.<\/p>\n

\u201cThis is a policy decision, it has been done after a careful look at current and future policies related to level of production,\u201d said the energy minister.<\/p>\n

The UAE\u2019s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals. We thank OPEC and its member countries for decades of constructive cooperation. We remain committed to energy security, providing reliable, responsible, and\u2026<\/p>\n

\u2014 \u0633\u0647\u064a\u0644 \u0627\u0644\u0645\u0632\u0631\u0648\u0639\u064a (@HESuhail) April 28, 2026<\/a><\/p>\n

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\u201cThis will have long- term impacts,\u201d said Behrouz Bakhtiari, a professor at McMaster University\u2019s DeGroote School of Business.<\/p>\n

While a major player like the UAE stepping outside the OPEC fold would mean the UAE wouldn\u2019t have to abide by Saudi-led production controls, and that means lower prices in the long term, it also means more volatility.<\/p>\n

\u201c[UAE] operating outside of OPEC will mean we could potentially also see more volatility down the road in terms of production, in terms the amount of oil in the market, which also will be linked to the volatility in the price of oil,\u201d Bakhtiari said.<\/p>\n

OPEC was created to benefit the oil-exporting nations, bringing them from a competitive market to a coordinated one. While the group has been referred to as a cartel, it has also played a regulatory role in global oil markets, Bakhtiari said.<\/p>\n

A weakened OPEC means oil-importers like the U.S. will be looking for new stabilizers.<\/p>\n

\u201cThis is where Canada could come in as a stabilizer,\u201d he said.<\/p>\n

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\u201cMany of the U.S. refineries may rely or start looking more at Canada as a steadier, safer flow of oil regardless of what Saudi Arabia and OPEC or UAE are going to do,\u201d he added.<\/p>\n

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The UAE is preparing for a future where the global demand for oil peaks and then eventually plummets, Bakhtiari said.<\/p>\n

\u201cAt some point oil loses its value, or there is going to be a decline in the value of oil,\u201d he said.<\/p>\n

The UAE is looking to \u201cmonetize their assets to its fullest capacity before the world finds other sources of energy or other sources of energy became more widespread or widely used,\u201d he said.<\/p>\n

The current geopolitical climate is the perfect opportunity for the UAE to exit OPEC, he added.<\/p>\n

\u201cRight now, the world is in chaos. What\u2019s a little more chaos added to it?\u201d Bakhtiari said.<\/p>\n

But the drop in oil prices is still a long ways away, with the world contending with the Iranian and American blockades of the Strait of Hormuz.<\/p>\n

OPEC Gulf producers have already been struggling to ship exports through the\u00a0Strait of Hormuz<\/a>, a chokepoint between Iran and Oman through which a fifth of the world\u2019s crude oil and liquefied natural gas normally passes, because of Iranian threats and attacks against vessels.<\/p>\n

Mazrouei said the move would not have a huge impact on the market because of the situation in the strait.<\/p>\n

But the UAE exit from OPEC represents a win for U.S. President Donald Trump, who has accused the organization of \u201cripping off the rest of the world\u201d by inflating oil prices.<\/p>\n

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Trump has also linked U.S. military support for the Gulf with oil prices, saying that while the U.S. defends OPEC members they \u201cexploit this by imposing high oil prices.\u201d<\/p>\n

The move came after the UAE, a regional business hub and one of Washington\u2019s most important allies, criticized fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war.<\/p>\n

Anwar Gargash, the diplomatic adviser for the UAE president, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.<\/p>\n

\u201cThe Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically,\u201d Gargash said.<\/p>\n

\u201cI expect this weak stance from the Arab League and I am not surprised by it, but I haven\u2019t expected it from the (Gulf) Cooperation Council and I am surprised by it,\u201d he said.<\/p>\n

The move from the UAE comes as global demand for oil continues to plummet. The International Energy Agency forecasts that the world\u2019s demand for oil will contract further this year.<\/p>\n

\u2013with files from Reuters<\/p>\n

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