OPEC fractures as UAE quits and cartel loses power
Updated
Updated · Reuters · May 5
OPEC fractures as UAE quits and cartel loses power
9 articles · Updated · Reuters · May 5
The UAE, OPEC's fourth-largest producer, left after 60 years, while the group's share of global oil output fell to about 26% in March from roughly 35% last year.
Reuters says US actions in Venezuela and strikes on Iran, followed by the Strait of Hormuz closure, shut in about 10 million barrels per day and exposed OPEC's inability to stabilise markets.
The absence of the UAE from Sunday's OPEC+ meeting underlined deep rifts, raising risks of greater oil-price volatility, weaker market management and more boom-and-bust cycles for producers including the US.
Is OPEC's collapse an unintended casualty of U.S. actions, or a strategic victory for American energy dominance?
As new energy alliances form, which nations are best positioned to win in a post-OPEC world?
With Hormuz closed, can a 'dark fleet' and strategic reserves truly prevent a long-term global economic crisis?
UAE’s 2026 Exit from OPEC: Shattering Cartel Cohesion and Redefining Gulf Geopolitics
Overview
On May 1, 2026, the UAE formally exited OPEC, driven by ongoing conflict involving Iran that disrupted the vital Strait of Hormuz and cut off UAE and Saudi Arabia's spare oil capacity from global markets. This disruption, combined with the UAE's frustration over restrictive OPEC production quotas and escalating rivalry with Saudi Arabia, led the UAE to seek greater strategic autonomy and deepen its alignment with the US and Israel. The exit weakened OPEC's ability to manage supply and stabilize prices, increasing market volatility and encouraging other members to challenge quotas. The UAE now aims to rapidly boost oil output, reshaping Gulf geopolitics and global energy dynamics.